Bitcoin Breaks Above $77K, Triggering $865M in Liquidations — What the Bullish Signals Mean Now
Bitcoin surged 6.2% to $77,393 on August 21, 2026, breaking decisively out of a multi-week consolidation range between $65,000 and $68,000. The move, which pushed BTC to an intraday high of $79,461, triggered over $865 million in liquidations, with short sellers bearing the brunt of the losses.
According to data from Coinglass, $742.28 million in short positions were liquidated, representing roughly 86% of the total $865.38 million in BTC liquidations. This forced-buying cascade contributed to the speed and intensity of the rally, as bearish apply was caught on the wrong side of the move.
Also read: Bitcoin, Ethereum, XRP Rally as $1B Short Squeeze and ETF Inflows Fuel Crypto Gains
Short Squeeze Dynamics and Market Structure
The derivatives market provided the clearest explanation for Bitcoin’s vertical ascent. The 12-hour liquidation figure stood at approximately $655.90 million, with $547.58 million in short positions wiped out. The largest single liquidation recorded was approximately $23.60 million, while total liquidation activity was running at 2.15 times the seven-day average.
This level of forced buying creates a unique market dynamic. While the breakout is technically significant, a portion of the upside pressure came from shorts covering rather than new long demand. The question now is whether the market can sustain momentum once the forced unwind subsides.
Also read: Bitcoin ETF Outflows Hit $389.71M, Largest in Six Weeks, as Ethereum ETFs Show Resilience
Key Resistance Levels and Technical Outlook
Bitcoin’s daily chart shows the next major supply zone sitting around $82,000–$84,000. A sustained daily move through this area would significantly strengthen the breakout structure and open the door toward the next major overhead zone near $96,000–$98,000.
On the downside, the first level traders need to watch is the former breakout region around $68,000–$70,000. However, a shallower retracement toward $72,000–$75,000 could still represent a normal post-breakout retest rather than a structural reversal. The critical distinction is whether BTC can establish higher lows above the previous consolidation range.
Bull Score and MVRV Signals Support the Move
The technical breakout is being supported by improving market-regime signals. The latest Bitcoin Bull Score data has moved back above the 60 threshold, entering bullish territory for the first time since October 2025. The indicator currently has 6 of 10 underlying signals turning positive, including measures linked to demand growth, stablecoin liquidity, and trader realized price.
This matters because the previous rally attempt in May, when Bitcoin moved above $82,000, reportedly failed to push the Bull Score into bullish territory. The current improvement provides a different backdrop for the latest price expansion.
Another chart-based signal is emerging from Bitcoin’s MVRV ratio, which is showing a sharp upward move. MVRV compares Bitcoin’s market value with the realized value of its supply and is commonly used to assess whether the market is moving away from depressed valuation conditions. The latest trajectory resembles the type of recovery historically seen when prolonged downside phases transition into stronger advances.
Neither the Bull Score nor MVRV alone confirms a new bull cycle, but combined with the breakout and heavy short liquidation, they give the current move a stronger technical foundation than a standalone price spike would suggest.
What to Watch Next
The immediate focus is on $80,000 and the $82,000–$84,000 supply zone. A clean breakout above $84,000, particularly if accompanied by sustained volume and declining dependence on forced short covering, would establish a significantly stronger bullish structure. The next major chart objective would then sit around $96,000–$98,000.
However, traders should not ignore the possibility of a post-squeeze retracement. With $742 million in short positions already liquidated, part of the immediate upside pressure has come from forced buying. A pullback after such an aggressive move would not necessarily invalidate the breakout.
The key level is the former range ceiling. If BTC can hold above $70,000 and build support between $72,000 and $77,000, the breakout remains structurally constructive. A sustained move above $84,000 would be the stronger confirmation that Bitcoin has entered a new expansion phase.
This article is for informational purposes only and does not constitute financial advice. Cryptocurrency markets are highly volatile and uncertain. Always conduct your own research before making investment decisions.
