In the past 4 hours, an interesting event occurred in the market—about $140 million worth of Bitcoin and cryptocurrency short positions were liquidated en masse. Such a large-scale chain liquidation often has the power to change the short-term market rhythm, which is why many traders see it as an important signal of a bullish reversal.

From a technical perspective, this rally is not an isolated price jump but a coordinated move accompanied by synchronized volume expansion. After breaking through a key level, high-leverage short positions triggered stop-loss orders, creating a typical scenario of passive buy-ins by shorts, which further pushed the market higher. In a short period, this passive stop-loss-driven buying completely ignited upward momentum, making the trend show clear acceleration characteristics.

Interestingly, during this wave of short liquidations, there was no sign of hysterical chasing and panic buying. On-chain data shows that the open interest of mainstream coins remained relatively stable, without extreme inflation. This indicates that the market is not merely an emotional outburst but a genuine adjustment of capital in a certain direction. Because of this, although prices rose, they maintained relative stability without rapid plunges.

From a macro perspective, the current market is highly sensitive to interest rates, policies, and institutional capital flows. The exit of a large number of shorts signifies that the short-selling force has been significantly weakened, and bulls are re-establishing their advantage. However, it’s also important to note that continuous liquidations often lead to greater volatility, and subsequent market movements are likely to involve frequent oscillations and new rounds of capital reallocation.

Looking back, the $140 million short liquidation is not just a technical event; it reflects a shift in market sentiment. Whether the bulls can sustain their current advantage depends on whether there will be continued trading volume and capital inflow. But for now, the atmosphere of a bull market is indeed beginning to re-emerge.