On January 24, 2026, BTC and ETH collectively broke through key integer levels, triggering a rapid increase in market sentiment. BTC price surged above $91,000, while ETH rose to around $3,000. Both major assets recorded an approximate 2% increase within 24 hours, accompanied by a dramatic expansion in the scale of liquidations across the network. During this round of price increase, the upward movement was highly synchronized with concentrated short liquidations, exhibiting typical characteristics of a short squeeze, leading to a clear divergence in the market regarding whether this trend represents a significant breakout or a short-term, fund-driven "impulsive" rally.

Integer Levels Breached: BTC Hits $91,000, ETH Surpasses $3,000

● Price Performance: From the market perspective, BTC has stabilized around $91,000, with multiple data sources indicating a 2.0% increase within 24 hours, maintaining a relatively strong structure amid high-level fluctuations. The price breaking through and stabilizing at this integer level signifies that the market has sufficiently digested the selling pressure from previous highs, with buyers willing to take positions at higher levels, enhancing the technical signals for continued upward movement.

● ETH Breaks Through Simultaneously: On the same trading day, ETH reached and stabilized above the important integer level of $3,000, with a 24-hour increase in the range of 2.0%–2.25%, slightly outperforming BTC. ETH's breakthrough not only boosted the sentiment for mainstream assets but also further solidified the market impression that the "main upward phase is still ongoing," making funds more willing to increase long positions in mainstream varieties.

● Significance of Technical Levels: Integer levels often carry both technical and psychological significance. Previously, both bulls and bears had engaged in multiple tug-of-war battles around $90,000 and $3,000. Following this substantial breakthrough, technical traders are more inclined to view it as a signal for trend continuation, with bulls actively defending during the breakout retest, and most short-term strategies will adjust their support expectations accordingly, amplifying the bulls' confidence and execution strength regarding the upward trend.

$149 Million in Short Liquidations: Leverage Liquidation Fuels Market Rally

● Concentrated Liquidation Outburst: According to Coinglass data, in the past hour, the total liquidation scale across the network was approximately $149 million, with short liquidations accounting for about $146 million, indicating an extreme imbalance between longs and shorts. Such concentrated passive liquidations within a single hour directly amplified the inertia of price increases, providing additional liquidity support for bulls as they broke through key price levels.

● Amplified Daily Losses: Extending to a 24-hour dimension, the total liquidation amount across the network was approximately $303 million, involving around 105,156 accounts, indicating that a significant portion of market participants suffered heavy losses during this rapid price surge. Large-scale leveraged funds were forced to exit, creating more upward price space for spot and low-leverage longs, reinforcing the one-sided characteristics of the market.

● Characteristics of Short Squeeze: In terms of timing and direction, this round of liquidations exhibited a typical short squeeze path of "upward breakout—consecutive short liquidations—price acceleration." Above key resistance levels, the combination of short stop-losses and forced liquidations created a concentrated buying demand in a short time, pushing prices further away from the original fluctuation range and resulting in an unexpected increase.

● Market Consensus Develops: Multiple institutions and trading platforms have pointed out that in this rapid surge of BTC and ETH, passive short covering and forced liquidations were significant driving forces. As the narrative of "the short-term rise is more about short squeezes" spreads, some cautious funds have chosen to temporarily observe, waiting for real buying support after the short squeeze ends, leading to a new round of divergence and competition in long and short expectations.

Who is Being Forced to Buy: Analyzing Liquidation Data for Chip Migration

● Concentrated Bearish Bets: From the liquidation structure, the latest round of liquidations was primarily composed of short positions, indicating that a considerable amount of bearish bets had accumulated below $90,000 and $3,000. As prices strongly broke through, leveraged funds betting on a pullback were forced to exit, indicating that the market's expectation of "topping out and falling back" was forcibly corrected in a short time.

● Forced Liquidation Buying: In a short period, shorts were forced to liquidate within the breakout range, effectively "forcing buying" at market prices to close contract positions, directly raising the actual buying demand on both the spot and contract sides. This forced buying not only did not suppress prices but also aligned with the direction of active long buying within a certain time window, creating an upward "collective stampede."

● Bulls Consolidate High Positions: Meanwhile, after the breakout, bulls tend to consolidate positions above the integer levels, transforming previous resistance levels into new support zones. As the short positions are passively exited through liquidations and stop-losses, the remaining position structure in the market leans more towards bulls, further reinforcing the potential for continued upward trends in short-term technical formations.

● Concerns After Imbalance: However, the current short-term imbalance between bulls and bears also lays the groundwork for potential amplified volatility in the future. If subsequent new buying fails to follow through, or if adverse changes occur in the macroeconomic and liquidity environment, bulls without counterparties may concentrate on taking profits, potentially triggering a new round of severe volatility, making the scenario shift from "short liquidation igniting" to "bull liquidation counterattack" equally plausible.

Weaker Dollar Assists: DXY Falls Below 98, Amplifying Risk Appetite

● Key DXY Retreat: On a macro level, the Dollar Index DXY fell below 98, marking its first dip to this level since December 30 of the previous year, signaling a phase of weakening for the dollar. For global assets priced in dollars, a dollar pullback often means reduced valuation pressure, providing some upward space for risk assets.

● Favorable for Crypto Assets: Historical experience shows that a weaker dollar typically benefits the performance of risk assets, including BTC and ETH. On one hand, the relative attractiveness of dollar assets decreases; on the other hand, some overseas funds priced in dollars may seek higher-yielding, higher-beta investment targets, making crypto assets once again an important direction for risk appetite in this round.

● Dual Drivers Combine: In this round of market activity, the marginal improvement in the foreign exchange environment and the short squeeze on the contract side occurred simultaneously, creating a resonance between macro and micro lines, amplifying the upward elasticity of prices. If only one side were driving, the market might remain in a "moderate rise"; however, under the combined influence of both factors, the breakthroughs of BTC and ETH appear more explosive.

● Hedging and Reallocation: Against the backdrop of uncertainty regarding the outlook for traditional assets in global markets, some funds are gradually viewing crypto assets as "uncorrelated assets" and potential hedging tools within their portfolios. As DXY retreats, funds are increasing their weight in BTC and ETH in diversified allocations, helping to explain why the crypto market can still gain strong upward momentum despite the lack of significant macro improvements.

Quiet Window Before FOMC: Stable Expectations Amplify Technical Trends

● Meeting Expectations Stable: According to Bank of America Securities, the upcoming January FOMC meeting is unlikely to release too much new information, and market expectations regarding short-term interest rate paths and policy stances are relatively stable. In the absence of "black swan" level policy signals during this time window, the macro-level suppression of risk assets is relatively limited.

● Risk Appetite Buffer: The stability of macro policy expectations provides a certain buffer for market risk appetite. Investors, in the absence of significant changes in interest rates and liquidity, are more willing to shift their focus to technical aspects and changes in capital structure, allowing market internal events like contract liquidations and key price level breakthroughs to more easily dominate short-term prices.

● Amplified Effect of Technical Breakouts: In the absence of significant bearish catalysts, the technical breakthroughs of BTC and ETH at integer levels are more likely to be amplified into trend signals. Trading algorithms and quantitative strategies often automatically increase positions when prices break through historical highs or important ranges, resonating with the emotional chasing of human traders, transforming technical breakouts into more powerful one-sided trends.

● Trigger Points for New Directions: Looking ahead, if subsequent macro signals lean significantly hawkish or dovish, they could become key variables triggering a new round of directional choices. A hawkish stance may suppress medium- to long-term risk appetite, leading to a flow of funds back into dollar assets; a dovish stance may further elevate "liquidity easing expectations," opening new upward space for BTC and ETH, making the current breakout the starting point for a larger cyclical trend.

Bullish Victory or Temporary Rebound: The Key Lies in Maintaining Integer Levels

The current round of price increases features both technical breakthroughs and short squeezes, establishing a temporary bullish advantage after breaking through the key levels of $91,000 and $3,000. However, whether this will evolve into a sustained mid-term trend remains to be seen. The resonance between technical and capital aspects has indeed strengthened the short-term upward momentum, but it also means that the market is more sensitive to changes in sentiment and liquidity.

If BTC and ETH can maintain their positions above the integer levels in the subsequent trading days and continue to receive buying support during pullbacks, bullish confidence is expected to further solidify, attracting more incremental funds from outside the market, facilitating a healthy transition from "driven by short squeezes" to "spot and institutional buying support." Conversely, if subsequent macro and liquidity environments show signs of weakening, or if market concerns about interest rate hikes and economic outlook resurface, high-leverage bulls and chasing funds may also face the risk of being liquidated in the opposite direction, making the scenario shift from "short liquidation igniting" to "bull liquidation counterattack" equally plausible.

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