Bitcoin jumps 26% in five days as short squeeze drives rally; traders flag near-term pullback risk

ChainThink said on Aug. 23, citing Forbes, that Bitcoin ripped from $62,900 to $79,500 in just five days, a 26% surge that triggered more than $3.1 billion in short liquidations. Trader MARMOT attributed the move largely to a short squeeze rather than fresh, organic demand, calling the $3.1 billion wipeout one of the biggest liquidation events on record. Retail traders also showed clear FOMO, piling into the rally. Geoff Kendrick, Head of Digital Assets Research at Standard Chartered, said the bank's earlier year-end target of $100,000 may prove too conservative. He added Bitcoin could retest its prior record high near $126,000, with the pace of the market's recovery expected to pick up after Oct. 6. Trader David Goldstein said $80,000 is the first key resistance. He expects the move could top out around $85,000–$90,000 before a pullback and consolidation in the $70,000–$75,000 range. U.S. spot Bitcoin ETFs also returned to net inflows. Total inflows reached $1.62 billion over the four trading days through Aug. 21, reversing the prior stretch of net outflows. Several traders urged caution against chasing the rally, citing elevated short-term correction risk.