Short Squeeze Propels Bitcoin Rebound, Zcash Jumps

A short squeeze on Monday triggered roughly $522 million in short liquidations over 24 hours, lifting the total crypto market capitalization toward $2.15 trillion. Bitcoin rebounded to about $63,100 after a low of $59,014, and Zcash advanced about 12.5% to near $427.

The rally followed a week of steep losses that pushed the market to a cycle low near $2.02 trillion. Forced buybacks of bearish positions during the 24-hour window reduced immediate selling pressure and produced a mechanical rebound across multiple assets. Bitcoin led the recovery and Zcash erased part of a prior decline that sent the token toward $250 on some exchanges.

Global markets showed volatility alongside the crypto rebound. South Korea’s KOSPI fell more than 8% and triggered a circuit breaker as major chipmakers fell about 10%, and semiconductor weakness in U.S. markets spread across Asia. Geopolitical developments were mixed: President Trump characterized U.S.-Iran contacts as ‘close to a deal’, while reports said a third wave of Iranian ballistic missiles was fired toward Israel.

Market technicians identified price levels to watch. A daily close above $2.19 trillion for total crypto market cap would allow moves toward $2.29 trillion and $2.37 trillion; a break below $2.02 trillion could prompt another wave of long liquidations. For Bitcoin, a daily close above $64,283 was noted as a confirming level; support levels cited include $58,666, $55,192, $52,384 and $49,576.

Zcash regained its 200-day exponential moving average and was testing the 100-day line. Analysts said clearing $469 and then $521 would set targets near $594 and $688. At the same time, the 20-day exponential moving average was approaching a bearish crossover below the 50-day average, a technical development that could precede further downside if it completes.

Concentration risk in large holders drew attention. DWF Labs co-founder Andrei Grachev cautioned that forced selling by major holders such as MicroStrategy and BitMine could trigger a substantial market decline and suggested investors consider scenarios in which Bitcoin falls toward $10,000 to $20,000.

Trading activity during the bounce was uneven. Reported buying volume was weaker than during the mid-May rally, and some new large holders recorded unrealized losses as prices recovered. Traders noted the short squeeze produced immediate upside while headline risks and structural vulnerabilities persisted.