Bitfinex Warns of Critical Bitcoin Week After Aggressive $79K Short Squeeze

TL;DR

• Bitcoin closed above $77,000 after clearing $71,000, with roughly $3 billion in crypto shorts liquidated while futures open interest continued rising.
• US spot Bitcoin ETFs attracted about $1.92 billion during the week, but weak onchain transfer activity leaves questions about how durable the rally is.
• Bitfinex sees $73,500 as key support, while Strategy’s next filing, ETF demand and stablecoin growth could determine whether momentum continues or fades from current levels.

Bitcoin’s breakout into the upper $70,000s has transformed August into a sharp reversal, but Bitfinex says the next stretch will test whether the move is durable. BTC cleared $71,000 on Aug. 20 and closed the week above $77,000, gaining 22%. The rally’s force came largely from an aggressive short squeeze rather than broad onchain participation. About $3 billion in crypto shorts were liquidated across Aug. 19 and 20, while Bitcoin futures open interest rose to roughly $51.36 billion, signaling that fresh derivatives positioning entered even as shorts were forced out.

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