Bitcoin rallied nearly 6% on Monday, briefly trading above $86,000 for the first time since late January, as a wave of forced short covering amplified upward momentum.
The move coincided with almost $800 million in crypto short liquidations over a 24-hour period. The Kobeissi Letter said the market is in a "new bull market," pointing to a 50% gain in Bitcoin over two months.
Bitfinex Alpha cautioned that continued upside would require sustained buyer support, rising open interest and fresh capital inflows into US spot Bitcoin ETFs. It added that a daily close below $77,100 would invalidate the current bullish structure and potentially expose Bitcoin to the $76,677 True Market Mean.
Independent analyst Rekt Capital said Bitcoin had broken out of a cycle of lower highs in place since October 2025 and identified a new potential trading range between $86,681 and $93,659.
Broader markets offered a mixed backdrop: gold fell as expectations for further Federal Reserve rate hikes supported the dollar, while oil prices dropped to their lowest level in 12 days.
