Bitcoin Hits 7-Month High as Short Squeeze Fuels Rally

Bitcoin rose nearly 7 percent on Monday, September 21, 2026, reaching an intraday high of 87,395, its strongest level since January 29, before pulling back modestly. By Tuesday, the cryptocurrency was trading near 85,980, down 0.68 percent on the day. The rally carried Bitcoin above a key swing area between 81,517 and 82,833 that had acted as resistance since February 2026, defined by swing highs and lows going back to November and December 2025. That zone now functions as a support level. As long as Bitcoin stays above it, buyers can argue they remain in control; a move back below would suggest a failed breakout. The first nearer-term support traders are watching is the 38.2 percent retracement at 83,916, measured from the October 2025 high near 126,272 to the June low near 57,737. A short squeeze supplied much of the fuel. Coinglass data showed 746.6 million dollars in crypto liquidations over 24 hours, with shorts accounting for 647.9 million dollars, while marketwide trading volume rose 39 percent to roughly 224 billion dollars. Another report put short liquidations at 556 million dollars over the day, a figure that reflects a different data window or venue.