BTC surge triggers scramble among short positions.

Bitcoin surged from an intraday low near $86,200 to reclaim the $90,000 level on Wednesday, driven by strong spot buying and a wave of short liquidations.

Coinglass data shows over $110 million in BTC ($88,197.67) short positions were liquidated during the move, primarily across bitcoin trading pairs. The price spike coincided with only a modest decline in futures open interest, suggesting that short sellers either closed positions via spot purchases to reduce risk or were forcibly liquidated.

The cumulative volume delta (CVD) for bitcoin climbed roughly 1,100% during the surge, signaling that buyers were decisively overpowering sellers—a pattern not seen since Dec. 1. Altcoins largely lagged the rally, pushing BTC dominance back toward 60%, compared with a September low of 56.7%. Historical data from Velo indicates that Wednesdays have been the strongest performing weekday for bitcoin over the past year.

Oversold RSI signals potential extended bull market

Julien Bittel, head of macro research at Global Macro Investor, noted that bitcoin’s recent price action is consistent with recoveries following “oversold” RSI readings, with the latest dip below 30 last seen in September 2025. He added that traditional four-year cycle models are increasingly less relevant—not due to the halving, but because of shifts in debt refinancing, longer-term maturities, and liquidity dynamics. Bittel expects the current bull market to extend into 2026.