Bitcoin Hits $64K as Short Squeeze Liquidates Millions

Bitcoin climbed 0.8 percent on Tuesday, reaching a daily peak of $64,360. The move caught many traders off guard, resulting in a sudden short squeeze that liquidated $35 million in short positions. Despite the volatility, the asset managed to maintain support above the $63,500 level throughout the session.

The current price action keeps the total market capitalization for Bitcoin steady at $1.29 trillion. While the upward move provided a brief win for bulls, analysts at Bitfinex are urging caution. They suggest that the current market structure still carries significant downside risks that traders should watch closely.

Market participants will be looking to see if Bitcoin can hold this support level over the coming days. If the asset fails to defend the $63,500 mark, the market could face renewed downward pressure. Traders should keep an eye on volume levels as the asset tests these recent highs.