Short sellers 'destroyed' as Bitcoin analysts predict $65K support level test
Market liquidity experts indicate bullish control following Bitcoin's surge to $74,000, though potential support retesting may drive prices nearly $10,000 below current levels.
Short position holders in Bitcoin (BTC) have been "annihilated" during the cryptocurrency's recent rally to monthly peaks, as total liquidations across the crypto market exceed $500 million.
Key points:
- Short position holders experience significant losses as Bitcoin reaches $74,000 price levels.
- Market experts anticipate additional liquidation events for both long and short positions, with possible downward movements beneath $70,000 to verify support levels.
- Institutional Bitcoin investments start mirroring a widespread ETF recovery trend continuing throughout 2026.
Bitcoin price examination: "Bullish traders have regained control"
Fresh market commentary from CryptoReviewing, who serves as pseudonymous cofounder of the Wealth Capital trading community, indicates that Bitcoin's "entire market scenario" has undergone transformation.
Recent days have witnessed BTC price volatility eliminate both bullish and bearish positions totaling hundreds of millions of dollars in value, though the rally toward $74,000 inflicted greater damage on short sellers.
"Bears just got annihilated," CryptoReviewing concluded in the assessment.
Supporting exchange order-book information from monitoring platform CoinGlass reveals price movement cutting through substantial liquidation walls.
Total liquidations across Bitcoin and alternative cryptocurrencies on Wednesday approached $600 million, with short position liquidations reaching levels not seen since Feb. 25.
"And now the entire market scenario has changed... At $73,000 - $75,000 we have a large liquidity zone which could be swept, potentially leading to even higher levels," CryptoReviewing added in the analysis.
"However, $65,000 - $71,000 below has roughly 4x more liquidity built up, making it the 'more likely' zone from a liquidity perspective to be visited next. Bulls just took back control."
Keith Alan, who cofounded the Material Indicators trading platform, similarly has this potential support retest under observation.
In fresh market commentary released on Wednesday, Alan contended that establishing a consolidation period would serve as an essential component of a trustworthy trend reversal.
"A support test, sooner than later, would be healthy, but I'm not sure that the market is going to make it that easy on us. However this develops, IMO, the longer it takes to grind up, the more durable the rally will likely be," he stated in his analysis.
Despite this, Alan cautioned that bearish indicators for the long-term perspective continue to persist, with expectations that Bitcoin's "next leg down" will emerge from the present market configuration.
Spotlight on Bitcoin ETFs during "unprecedented growth phase"
According to Cointelegraph's previous coverage, the upward price movement has coincided with revitalized Bitcoin demand from institutional participants.
United States-based spot Bitcoin exchange-traded funds (ETFs) recorded net capital inflows approaching $500 million on Wednesday.
Information provided by Farside Investors, a UK-based investment firm, validates that inflows have maintained net positive status on every trading day except one since Feb. 24. Furthermore, that single day of outflows registered a minimal $27.5 million.
During March's trading period thus far, these ETF products have accumulated in excess of $1.1 billion in fresh capital.
In market observations, The Kobeissi Letter trading resource highlighted that broader ETF appetite has experienced a dramatic surge throughout the current year, positioning the US-listed Bitcoin and Ethereum products as comparative underperformers following extended periods of capital withdrawals.
"Investors are pouring money into US funds at a record pace: US-listed ETFs have pulled in +$380 billion so far in 2026, on track for the best year on record. This marks a +80% increase compared to the first two months of 2025," the firm disclosed via its X platform account.
The Kobeissi Letter characterized the United States ETF sector as "experiencing a historic acceleration in investor demand."
