---
title: "Bitcoin Eyes $72,500 After $1bn Short Squeeze Sparks 8% Rally"
publisher: "Share Talk"
author: "sharetalk"
published: "2026-08-20T14:49:34+00:00"
modified: "2026-08-20T14:49:34+00:00"
date: 2026-08-20
canonical: "https://www.share-talk.com/bitcoin-eyes-72500-after-1bn-short-squeeze-sparks-8-rally/"
category: "Blogs"
categories: ["Blogs", "e-commerce", "Fintech", "Technology", "Technology, Media & Telecoms"]
tags: ["Bitcoin", "BTC", "short squeeze"]
image: "https://i0.wp.com/www.share-talk.com/wp-content/uploads/2026/08/589b19a4-9c51-4ab1-835c-079c4f87c0b4.png?fit=1725%2C912&ssl=1"
format: "news"
language: "en-GB"
---

# Bitcoin Eyes $72,500 After $1bn Short Squeeze Sparks 8% Rally

**Published:** August 20, 2026
**Author:** sharetalk
**Categories:** Blogs, e-commerce, Fintech, Technology, Technology, Media & Telecoms
**Tags:** Bitcoin, BTC, short squeeze
**Featured image:** ![](https://i0.wp.com/www.share-talk.com/wp-content/uploads/2026/08/589b19a4-9c51-4ab1-835c-079c4f87c0b4.png?fit=1725%2C912&ssl=1)

---

**Bitcoin traders are betting the cryptocurrency has further to run in August following a dramatic short squeeze**, although prediction markets suggest there is little expectation of a return to six figures this month.

Bitcoin surged nearly **8% on Wednesday to around $69,500**, its strongest level since early June and its biggest one-day gain since March.

The move triggered more than **$1 billion of short-position liquidations in roughly an hour**, forcing traders betting on further declines to buy back positions as prices accelerated higher.

Prediction market Polymarket subsequently put the probability of Bitcoin reaching **$72,500 during August at 46%**, a jump of 29 percentage points on the day. The odds of touching $67,500 increased to 59%.

Expectations fall rapidly beyond those levels. Traders assigned a **21% probability to $75,000**, 10% to $77,500 and just 5% to $80,000. The chance of Bitcoin reaching **$100,000 was only 1%**.

The rally was supported by more than forced short covering. Large Bitcoin holders have reportedly accumulated around **$2.9 billion of the cryptocurrency over the past 60 days**, while improving sentiment around US financial conditions provided another tailwind.

However, technical resistance remains. Bitcoin was still below its **200-day moving average near $69,900**, meaning the latest surge has yet to establish a convincing longer-term trend reversal.

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