Bitcoin touched a session high of $64,360 on Tuesday, posting a 0.8% gain as a sudden rally forced a heavy short squeeze that wiped out $35 million in short positions. The move came after BTC held support above $63,500 and traded in a range between $63,300 and $64,360, with its market cap sitting at $1.29 trillion. But not everyone is convinced the uptrend has legs — Bitfinex warned of downside risks despite the price increase.
Short squeeze clears $35M in bets
The squeeze caught bears off guard. As Bitcoin pushed through the $64,000 mark, leveraged short positions were liquidated in rapid succession, totaling $35 million across major exchanges. The action was concentrated in the afternoon session, when BTC briefly spiked above $64,300 before settling near the high. The move was enough to reset the funding rate and shake out weaker hands on the short side.
Bitfinex's cautious take
Bitfinex's analysts struck a measured tone in a note Tuesday, pointing out that the rally came on relatively thin volume and that macro headwinds remain. They said the price increase doesn't change the broader risk picture and that traders should be prepared for a potential pullback. The warning stands out because it comes from an exchange that typically doesn't issue directional calls — and it suggests the move may be more technical than fundamental.
Support holds above $63,500
For now, Bitcoin has managed to defend the $63,500 level, which acted as a floor during Tuesday's oscillation. The range between $63,300 and $64,300 was tight, but the repeated bounces off the lower end show buyers are willing to step in. Whether that support holds into Wednesday will depend on whether the short squeeze has exhausted itself or if more shorts are waiting to be squeezed.
The next test comes later this week, when weekly options expire and the CME gap around $62,000 could come into play. For now, Bitcoin is sitting just below its session high, and the market is watching to see if the bulls can push through $64,500 without triggering another wave of profit-taking.
