Bitcoin jumped above $69,000, returning to levels last seen around its 2021 peak, as a sharp price move forced billions of dollars in short positions out of the market. More than $2.74 billion in short positions were liquidated in 24 hours, making it the eighth- argest liquidation event in crypto history.
Bitcoin Rally Triggers $2.74B In Short Squeeze
Bitcoin led the latest liquidation wave with around $1.42 billion in liquidations, while Ethereum followed with $1.13 billion. Overall, the crypto market recorded nearly $2.99 billion in liquidations.
Short traders took the biggest hit. Of the total, $2.74 billion came from short positions, compared with about $255.09 million in long liquidations.
The liquidation wave also hit individual high-risk traders. Blockchain tracker Lookonchain reported that a trader known as pension-usdt.eth had their entire 50,000 $ETH short position, worth about $106 million, liquidated.
Smart trader pension-usdt.eth, who once made $49M and had a 23-win streak, has been liquidated!
— Lookonchain (@lookonchain) August 20, 2026
His entire 50,000 $ETH ($106M) short was fully liquidated, resulting in a $23.9M loss.https://t.co/kca0oSGOnW pic.twitter.com/AEogLFLJ6y
The trader reportedly lost $23.9 million. The account had previously made about $49 million and recorded a 23-win streak before the latest trade was wiped out.
Short Liquidations Break Previous Records
The size of the latest move is also much larger than past short-liquidation events. K33 Research said Bitcoin futures saw nearly $1.1 billion in short positions liquidated in one day.
Vetle Lunde, head of research at K33 Research, said this was the first time Bitcoin saw more than $1 billion in short liquidations in a single day.
The figure is higher than previous records of $757 million in May 2021 and $694 million in November 2025.
The latest move also comes after Bitcoin’s major crash on 10 October, 2025. At that time, Bitcoin fell from above $126,000, triggering around $19 billion in total liquidations in one day.
Bitcoin Price Outlook
Meanwhile, crypto trader The Martini Guy says Bitcoin has changed its short-term trend after bouncing strongly from the $63,000 support. $BTC has broken back above key levels at $64,000, $65,700 and $67,200, turning them into new support zones.
Bitcoin has completely flipped its 4H market structure after a powerful move from the $63K support zone into major resistance.
— That Martini Guy ₿ (@MartiniGuyYT) August 20, 2026
$BTC is currently sitting around $68,018 after testing the $70.5K area and pulling back to consolidate.
The important part:
Bitcoin didn’t just bounce.… pic.twitter.com/BFr1Nl8dZh
Bitcoin is now trading near $69,322 after testing the $70,500 resistance. Martini suggests that the next key move depends on whether buyers can break and hold above $70,500.
If they do, $BTC could move toward $71,500 and $72,000. For now, $67,200 is the key support, holding above this level could keep the bullish trend intact.