- Bitcoin surged to an eight-month high on Tuesday, though altcoins like Dogecoin, Sui, XRP, Cardano, and Solana posted even larger gains.
- A short squeeze on Bitcoin between $82,000 and $86,000 fueled the rally, according to on-chain firm Glassnode.
- Analyst Willy Woo indicated the Bitcoin rally may have two to four weeks of runway before his indicators show overbought conditions.
Bitcoin climbed to its highest level since January on Tuesday, but the bigger move occurred further down the risk curve. Dogecoin, Sui, XRP, Cardano, and Solana all outpaced Bitcoin over the past 24 hours as short covering and renewed risk appetite pushed the broader market higher.
Data shows Bitcoin’s dominance dropped 0.1% in the past day, while the Altseason Index stood at 62, suggesting an altcoin season may be underway. Dogecoin rose the most, gaining 12.2%, followed by Sui at 8.3%, XRP at 6.2%, Cardano at 5.7%, and Solana at 4.3%, while Bitcoin rose over 2%.
On Stocktwits, retail sentiment around DOGE improved to the bullish zone from the bearish zone. One retail trader expected a short squeeze could follow for DOGE.
Bitcoin’s rally accelerated after clearing a short-liquidation wall, as Glassnode noted on X that the asset moved up into a thickening shelf of liquidation. According to Glassnode, short positions betting on a drop had built up over months between $82,000 and $86,000, and short sellers were forced to cover, adding fuel to the rally.
On-chain firm CryptoQuant added that Bitcoin’s rise from about $81,000 to $86,600 was driven by spot ETF demand, short liquidations, and limited historical supply overhead. Bitcoin was trading around $85,835 at the time of writing.
Analyst Willy Woo said on X that the rally has room to run for up to four weeks before turning overbought. He pointed to a recent cool-off in his oscillator indicator while price remained strong, indicating buying demand exceeding short-term profit-taking.
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