On the early morning of January 14th, the Bitcoin market experienced a sharp fluctuation. After more than two months of dormancy, the market suddenly erupted, with Bitcoin directly breaking through the multiple failed resistance level of $94,500, reaching a high of $96,495, creating a recent new high.

What is behind this? Simply put, it is a massive short squeeze. According to on-chain data, in just 24 hours, the total liquidation amount of cryptocurrency futures contracts across the network exceeded $685 million. Among them, $598 million came from short positions—traders who were short near $94,000—almost experiencing account "evaporation" overnight.

What is truly worth noting is the trigger logic of this wave of market movement. Since December 2025, Bitcoin has attempted to break through the $94,500 barrier three times, but each time ended in failure. This time, the difference is that the large bullish candlestick in the early morning brought enormous trading volume that directly broke through this key support/resistance line. More importantly, after the breakout, the price quickly stabilized, and this level happened to gather a large number of high-leverage short positions and stop-loss orders set here. Once the price broke through, automatically triggered stop-loss sell orders immediately turned into forced liquidation buy orders, forming a typical chain reaction—shorts wanting to escape were forced to buy more, pushing the price higher, ultimately evolving into a "short squeeze" massacre.

So the question is: is this a short-term rebound trap, or the beginning of a new upward cycle? It depends on whether the subsequent key support levels can hold and how institutional funds respond. However, based on the current technical analysis and capital flow, market sentiment has already undergone a significant shift.