Bitcoin surged to the $90,000 mark during Wednesday’s Wall Street open before sharply reversing lower.
The brief rally erased earlier losses and reignited volatility across crypto markets.
Market data showed bitcoin posting intraday gains of around 2.5 percent.
Prices quickly retraced as traders reacted to thinning liquidity conditions.
The sudden move triggered heavy liquidations across leveraged trading positions.
More than $120 million worth of short positions were wiped out.
Traders said liquidity hunting remained the dominant short-term market driver.
Similar price behaviour has been observed during recent US market opens.
Both long and short positions were caught by aggressive price swings.
Crypto trader Michaël van de Poppe said the move targeted vulnerable shorts.
A great move upwards on $BTC with many shorts ready to be taken out. - Michaël van de Poppe said.
He said reclaiming the $88,000 level was technically significant.
The $88K breakout is crucial and could lead to $93,000 or $94,000. - He said.
Market commentator exitpump also noted strength at the US session open.
He said shorts were being squeezed as bitcoin held above $88,000.
Trader Daan Crypto Trades said prices matched levels from six months ago.
Liquidity was taken on the way up and on the way down. - Daan Crypto Trades said.
He highlighted a major liquidity cluster near $95,000.
Some analysts cautioned the broader bitcoin trend remains fragile.
Caleb Franzen warned long-term moving averages are nearing critical levels.
At the time of reporting, Bitcoin price was $86,594.33.