Bitcoin climbed over the past 24 hours, raising a question across the market: how high can Bitcoin go this week?
Bitcoin is currently trading near $71,370, up about 6.35% in the last 24 hours. The rally appears to be driven mainly by activity in derivatives markets, where a large number of bearish bets were suddenly forced to close.
Short Squeeze Sparks the Rally
One of the biggest reasons behind Bitcoin’s jump is a short squeeze.
Data from derivatives markets shows that funding rates turned negative (-0.0014%), indicating that many traders were betting on Bitcoin’s price to fall. When the price started rising instead, those traders were forced to close their short positions by buying Bitcoin back.
This triggered a wave of liquidations.
In the last 24 hours alone, more than $190 million worth of Bitcoin positions were liquidated, adding strong buying pressure and pushing prices higher.
Capital Moving Into Bitcoin
Another trend is the rise in Bitcoin’s share of the crypto market.
Bitcoin dominance increased from 58.4% to 59.0% in just one day, showing that investors are moving funds from altcoins into Bitcoin. This type of rotation often happens when traders want to reduce risk while staying inside the crypto market.
Technically, Bitcoin is also showing strong momentum. The price is currently trading above important moving averages, while the RSI indicator sits near 72, showing strong but slightly overheated conditions.
Price Levels to Watch
For the rally to continue, analysts say Bitcoin must stay above an important support level.
The $70,553 level is currently acting as a major support based on Fibonacci retracement analysis. If Bitcoin holds above this level, the next target is a retest of the recent $71,886 swing high.
A successful breakout above that level could open the door for further gains this week.
However, if Bitcoin drops below $70,553, the market could see a pullback toward the $69,000 range.
Analysts Remain Divided
Not everyone is convinced the rally will continue.
Gold advocate Peter Schiff warned that Bitcoin’s move above $71,000 could be misleading. He wrote that the rally is a “head fake” and suggested investors should consider selling Bitcoin and buying precious metals instead.
At the same time, several market analysts say the recent bounce from support could signal the start of a new upward leg.
Bitcoin reacted strongly to a key support zone, adding that the recent breakout attempt makes another immediate drop less likely, although volatility could still continue.
What Comes Next
For now, Bitcoin appears to have regained short-term momentum after weeks of choppy trading.
If the price holds above the $70,000 range, analysts say Bitcoin could attempt a move toward $72,000–$74,000 in the coming days. A stronger breakout could even push the market toward the $75,000–$84,000 range over time.
For this week, the $72,000 level remains an important area to watch.
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