Bitcoin (BTC) has taken center stage in the financial world once again, triggering what could be the largest short squeeze of the year and signaling a potential turning point in the long-standing bear market. With over $618 million in crypto liquidations in just one day—more than half of it from Bitcoin alone—market sentiment appears to be shifting rapidly, giving rise to renewed hopes of a bullish cycle.

On April 23, Bitcoin surged past multiple key resistance levels, breaking through price barriers that had previously held strong throughout 2024 and early 2025. Data from Coinglass revealed that $317 million worth of Bitcoin short positions were liquidated in the process. The liquidations were largely driven by overleveraged traders, especially those using high-risk positions on platforms like Binance and Bybit. Many of these traders had open shorts at 100x leverage, which were swiftly wiped out as the price began climbing with force.

The movement of Bitcoin through the $92,000 to $94,000 range triggered a wave of stop-loss activations and margin calls. These zones had been heavily populated with short interest, making them prime targets for liquidation cascades once momentum shifted upward. As the price soared, these positions were forcefully closed, pushing Bitcoin even higher through a domino effect of forced buying.

As of now, Bitcoin is trading near $93,800, having broken above several key exponential moving averages (EMAs), including the 50-day, 100-day, and 200-day levels. This bullish breakout is seen as technically significant, not just because of the price level, but because of the volume behind the move. Trading activity has increased substantially, reinforcing confidence that this isn't just a temporary spike but rather the start of a broader upward trend.

Looking at Bitcoin’s liquidation heat map, analysts note that resistance levels above the current price appear thin. This suggests that the path to the psychological $100,000 mark may be less obstructed than in previous months. If this trend continues, Bitcoin could enter a new phase of price discovery.

Interestingly, even though the Relative Strength Index (RSI) is now approaching overbought territory, the momentum behind this rally remains strong. While an RSI near 70 traditionally signals a potential pullback, the scale and speed of this liquidation-driven price increase imply that market conditions are unique. In particular, this could be a moment where fundamental sentiment shifts, and bulls regain control in a meaningful way.

Until recently, market sentiment had been defined by caution, with low spot demand and persistent skepticism despite occasional rallies. However, the latest data points toward a changing narrative. The unwinding of aggressive short positions, coupled with strong technical breakouts, has flipped the tone among traders and analysts alike.

Should Bitcoin maintain this trajectory, the April 2025 short squeeze may be remembered as the defining event that marked the end of the bear cycle. The confluence of technical breakthroughs, high-volume trading, and large-scale liquidations is painting a picture of renewed market strength.

For now, all eyes remain on whether Bitcoin can sustain its momentum and challenge the $100,000 level—a feat that would further cement its resurgence in 2025. But one thing is clear: the bears are on the back foot, and the crypto market could be entering a new, more optimistic phase.