Bitcoin (BTC) traded between $75,000 and $73,000 over a three-hour period during the New York market open on Thursday, and the abrupt downside move liquidated $283 million in futures positions. The resulting short squeeze pushed BTC back toward $75,000, but sustaining the rebound will require steady buying volume in the spot market.
BTC rebounds amid slower spot demand
A sharp move lower to $73,200 from $75,400 triggered a wave of long liquidations across the futures markets, totaling to $166 million, according to market commentator CryptoReviewing.
The price then reversed quickly, pushing back toward $75,000 and liquidating roughly $117 million in short positions, highlighting a rapid two-sided squeeze within the same trading window.
The move tracked closely with liquidation spikes, which forced closures of short positions. The funding rates turned positive to +0.0005 shortly after the bounce, signaling that bearish positioning had built up before unwinding.
This indicates that upside momentum came from shorts covering rather than new long exposure. The rally cleared nearby liquidity pockets and pushed the price back toward the session’s mid-range.
The spot cumulative volume delta (CVD), which tracks net buying and selling in spot markets, continued to trend lower during the recovery. The divergence points to weaker spot participation even as Bitcoin holds above $74,000.
For a move above the $76,000 range highs, spot demand needs to strengthen alongside derivatives activity, aligning both sides of the market behind the price.
Related: Bitcoin rebounds near $74.5K as US stocks chase after new all-time highs
Bitcoin’s liquidity map defines key inflection points
Bitcoin continues to move between defined liquidity clusters, with the price gravitating around key levels. According to analyst KriptoHolder, the $76,000–$78,000 range contains a concentrated supply zone with $2.81 billion in short-leveraged liquidity, while $74,000 serves as an equilibrium area.
Long-leveraged liquidity of $2.5 billion is below $72,000, forming a potential price magnet if the upper levels fail to clear.
Meanwhile, the short-term trader behavior also reflects recurring intraday patterns. Bitcoin trader Killa noted that eight of the past 11 Thursdays recorded more downside than upside. Thursday’s session has already seen a near 2% decline from the daily open, offering intraday opportunities within that pattern.
Related: Bitcoin bull run ‘still too early’ to call as demand lags exiting capital: Analyst
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