Bitcoin price spike to $64.5K was ‘low-volume liquidity trap’: Analysis
Bitcoin rose to about $64,550 on Monday, triggering the largest single-day short liquidation tally in nearly a month at 637 BTC. CryptoQuant said the move was driven by crowded short positioning and funding-rate imbalances across major exchanges, creating a short squeeze after BTC had hovered near $62,750. Shorts were concentrated on platforms including Binance, Bybit, OKX, and Deribit, while one exchange briefly showed a sharp funding spike. CryptoQuant described the rally as a low-volume liquidity trap and warned more squeezes could follow if traders keep increasing short exposure. The main obstacle to a stronger, sustained rally remains weak spot demand, along with limited inflows to U.S. spot Bitcoin ETFs. CryptoQuant said a drop below $60,000, especially with rising exchange inflows, could increase downside risk toward $50,000. Short-term holders’ cost basis near $68,700 also keeps that area as resistance.
