This morning, Mad Money host Jim Cramer stated that the initiative has shifted to bulls. His forecast coincided with a sharp price reversal of Bitcoin, which triggered a massive wave of short position closures.
According to CoinGlass data, the sudden surge of BTC above the $71,000 level led to forced liquidations of short positions totaling more than $300 million in just four hours.
Why Jim Cramer is bullish following $801 million Bitcoin short squeeze
Over the past 24 hours, losses were recorded for 197,317 market participants, amounting to a total of $810.75 million. The main blow fell on Bitcoin instruments, with $253.37 million, and Ethereum with $253.54 million in liquidations. At the same time, the S&P 500 index is showing positive dynamics, rising to the 6,677 level, which is 1.56% higher than yesterday.
Liquidation Heatmap 24 Hours, Source: CoinGlassInvestor optimism is being supported by a temporary deescalation of tensions surrounding the main global conflict at the moment. Against the backdrop of rising risk appetite, capital outflows from safe-haven assets are being observed. Gold has corrected by 1.3% to $4,433.47 per troy ounce, and silver is trading around $68.19.
Jim Cramer emphasizes that the current rebound in the Bitcoin price and the rise of stock indices are connected to the present moment. In other words, he is not confirming a full trend reversal but only pointing out that the bears have, for now, been sent to lick their wounds.
As can be seen from crypto market indicators, overleveraging and underestimating — or rather the overestimation of pessimism around the current situation — have made this short squeeze truly painful.
Source: https://u.today/bitcoins-rally-to-71000-validates-cramers-bulls-rule-call-amid-801-million-crypto-liquidations
