Bitcoin extended its bullish breakout on Wednesday, surging to an intraday high of $97,800 during the U.S. trading session after decisively breaking above the long-standing $95,000 resistance level that had capped prices for nearly two months. The world’s largest cryptocurrency posted a 3.5% gain over the past 24 hours, reigniting optimism across the broader crypto market.
Ethereum also outperformed, with ether climbing 5% to around $3,380. This move marked Ethereum’s highest price in more than a month and its first clear break above the key $3,300 level in 2026. The synchronized rally between Bitcoin and Ethereum helped drive renewed risk appetite among digital asset investors.
The sharp price increases triggered significant liquidations in crypto derivatives markets, particularly among traders holding leveraged short positions. Data from CoinGlass shows that nearly $700 million in short positions were liquidated within 24 hours. Bitcoin shorts accounted for approximately $380 million, while more than $250 million came from liquidated Ethereum shorts. Short liquidations occur when rising prices force exchanges to automatically close bearish positions due to insufficient margin, often accelerating upward price momentum.
According to market analysts, the move above $95,000 unleashed a wave of short-covering demand. However, some caution that the rally may be driven more by technical and mechanical factors than by a fundamental shift in market conditions. Market makers may be pushing prices higher to rebalance supply and demand following the sharp declines seen in October and November.
Still, sentiment has clearly improved. Analysts note that Bitcoin’s breakout above $95,000 could act as a key signal for a broader “risk-on” phase in crypto markets. With equities remaining firm and bond yields stabilizing, macro conditions may also be supporting the current upswing. Trading volumes have increased alongside the rally, suggesting fresh demand rather than speculative excess, as funding rates in perpetual futures remain relatively subdued.
If Bitcoin can secure a weekly close above $95,000 or Ethereum pushes beyond $3,500, traders believe it could confirm a renewed bullish trend, potentially setting the stage for a test of the $100,000 level and beyond.
