Bitcoin Shatters $95K Resistance as Short Squeeze Wipes Out $292M

The $300M Pain Trade

Bitcoin pierced the critical $95,000 ceiling on Wednesday, forcing a mass capitulation of bearish speculators who had bet on the $93,000–$94,000 range holding as a long-term lid. The breakout triggered a liquidation cascade, wiping out $588.93 million in total crypto derivatives positions over 24 hours.

Data from CoinGlass confirms the carnage was lopsided: short sellers absorbed $292.59 million of the losses in Bitcoin alone. This squeeze mechanics were textbook. Forced buy-backs at market price accelerated the rally, pushing BTC to $96,000, its highest level since November. The move invalidates the bearish thesis that had dominated the last 57 days of consolidation.

Institutional Bid Returns

The derivatives flush coincided with renewed aggressive buying in the spot market. U.S. spot Bitcoin ETFs recorded $753.73 million in net inflows on January 13, the highest single-day intake since early October. Fidelity’s FBTC led the charge with $351.3 million, followed by Bitwise (BITB) at $159.4 million.

The $93,000–$94,000 resistance zone had contained Bitcoin for roughly 57 days, making the breakout structurally significant.

This volume suggests institutional allocators are front-running the easing inflation narrative. With the latest CPI data coming in cooler than expected and the Senate Banking Committee advancing the CLARITY Act, the regulatory and macro headwinds that suppressed price action in Q4 2025 are rapidly dissipating.

Outlook: The Path to $100K

Market structure has flipped. QCP Capital notes that while Bitcoin lagged gold and equities throughout December, the reclaim of $95,000 signals a regime change where dips are likely to be aggressively bought. Technical analysts now eye the psychological $100,000 barrier, with the 200-day moving average at $106,115 serving as the next major invalidation level for bears.