Over $300M In Bitcoin Shorts Liquidated As BTC Breaks Higher

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Bitcoin just tore through weeks of sideways trading in a matter of hours. The catalyst wasn’t a crypto headline at all. It came from the U.S. Treasury, and traders betting against Bitcoin paid the price fast.

What Actually Sparked The Move

The U.S. Treasury announced on August 19 that it will at least double the amount of longer-term government bonds it buys back, raising the figure from $2 billion to at least $4 billion per operation starting September 9.

Announcements like this tend to make risky assets more attractive, and crypto reacted almost immediately.

The Squeeze That Followed

Rising prices forced short sellers to cover fast, and that covering pushed prices higher still.

Total crypto liquidations reached $1.91 billion over 24 hours as of 5:00 p.m. UTC, with short positions accounting for more than 91% of that total.

Over $300M In Bitcoin Shorts Liquidated As BTC Breaks Higher — What's Next? — *Image Via Glassnode.*

Bitcoin alone briefly surged more than 7% in just 60 minutes, wiping out $1.2 billion in shorts during that single window and pushing the token to its highest level since early June.

A Move Bitcoin Has Made Before

This isn’t the first time geopolitical or macro headlines have triggered a short squeeze of this size on Bitcoin.

Techgaged reported in April that a similar spike toward $80,000 wiped out more than $140 million in shorts within hours after news broke of a potential U.S.-Iran deal over the Strait of Hormuz, though that rally reversed sharply soon after.

A separate move later that same month saw Bitcoin climb to an 11-week high above $79,000, with roughly $460 million in liquidations hitting mostly short positions as a ceasefire extension shifted sentiment toward risk assets.

Fast squeezes like today’s tend to fade quickly once the initial catalyst gets priced in.

Where BTC Stands On The Chart

As of 18:23 UTC on August 19, 2026, BTC/USD trades at $68,276.88 on the weekly chart, up 5.56%.

Price has broken decisively above the $63,000 resistance zone that capped it for most of August.

Also, the weekly MACD histogram has flipped firmly positive after months of choppy, mixed readings.

That combination, a sharp breakout paired with a fresh momentum shift, hasn’t shown up together on this chart since the rally into late 2025.

Whether this breakout holds and builds into a sustained trend, or whether the market needs to cool off after such a fast squeeze, is what traders will be watching in the sessions ahead.

Disclaimer:
This article is for informational purposes only and does not constitute financial, investment, or trading advice. The views expressed are based on publicly available data, market observations, and the author’s interpretation at the time of writing. Cryptocurrency markets are highly volatile and unpredictable, and past performance or current technical setups do not guarantee future results. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions. TechGaged does not accept liability for any losses incurred based on the information presented.

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