In a remarkable turn of events, one of the most significant short squeezes of 2026 unfolded within just a single trading session.
Bitcoin surged to $78,000 late on Friday, resulting in liquidations totaling $762 million across 168,336 traders. Notably, $593 million of this amount came from short positions, according to CoinGlass.
By Saturday evening in Asia, Bitcoin had retraced to $76,091—an increase of only 0.8% for the day—as Iran announced once again that the Strait of Hormuz was closed to maritime traffic. This announcement came less than a day after its foreign minister had declared it fully open.
Two tanker operators informed Bloomberg that their ships received Iranian radio communications indicating the closure of the waterway. One supertanker even reported gunfire and aborted its transit as a precaution.
The state-run news agency Nour reported that Hormuz was back under “strict management and control by armed forces” due to what they described as a U.S. blockade on Iranian shipping activities. Several oil tankers that had rushed toward the strait following Friday’s initial reopening news were forced to turn back.
The rally observed on Friday culminated in an impressive rout for shorts worth $590 million; specifically, liquidations related to Bitcoin accounted for $381 million—the largest portion—followed by ether shorts at $167 million. The ratio favored shorts nearly fourfold over longs during this liquidation event—the most pronounced short-heavy breakdown since February.
This situation had been brewing for weeks prior; funding rates on Bitcoin perpetual contracts remained negative throughout this period—indicating that those holding short positions were paying premiums to long holders simply to maintain their trades.
The reopening announcement regarding Hormuz acted as a pivotal catalyst leading up to this surge. Crude oil prices plummeted nearly 10%, settling at approximately $85.90 per barrel following these headlines while Bitcoin broke through resistance levels between $76,000 and $78,000—a range that has constrained every rally attempt since the crash on February 5th.
On Friday night, President Donald Trump informed reporters that Iran had consented to an “unlimited” suspension of its nuclear program; however Tehran did not corroborate his statement at any point thereafter.
This optimistic sentiment did not carry into Saturday without alteration.
A familiar market pattern has emerged where ceasefire announcements trigger rallies but are often followed by counterproductive headlines before any breakout can solidify itself—resulting in forced unwinds creating new setups against existing trends
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During this retreat phase, Ether fared better than Bitcoin with only a slight decline of 0.2% over twenty-four hours while Solana fell by 1.3% and Dogecoin dropped by 2.1%. On a weekly basis though Ether remains up by 5.2%, XRP leads with gains at around 6.4%, BNB increased by about 4.6%, whereas Bitcoin stands at approximately +4 .5%.
The critical question now is whether or not support will hold above the crucial level around$76 ,000 when markets reopen Monday morning . A decisive weekly close above$76 K would maintain structural integrity despite ongoing volatility stemming from peace negotiations.
Conversely , if we see prices dip below this threshold , then bitcoin could find itself trapped once more within ranges established since March —albeit now facing renewed pressure from previously wiped-out shorts eager rebuild their positions.