Bitcoin, XRP surge 25% weekly as $2.7B short squeeze hits

Bitcoin traded above $79,000 as of 06:58 UTC, up 25 percent weekly and more than 13 percent in 24 hours, while XRP hit $1.40, up 31 percent, after a $2.7 billion short squeeze.

"Bitcoin's recent rebound is a signal that has emerged for the first time in this bear cycle," Crypto Dan, analyst at CryptoQuant, said. "The MVRV indicator is showing a vertical rise, the same movement that appeared as the bottom range came to an end in every past downcycle."

The rally added approximately $280 billion to crypto market capitalization in under five days, lifting total market cap to $2.68 trillion. Coinglass data shows billions in leveraged short positions were liquidated as prices broke higher, forcing sellers to buy back coins and accelerating the move. The US Treasury doubled long-term bond buybacks, while President Trump voiced support for the CLARITY Act at a White House meeting.

The next test for Bitcoin lies between $78,000 and $80,000, and a successful reclaim could confirm the end of the bearish structure that has dominated since late 2025. For XRP, the weekly 20 and 50 EMAs between $1.20 and $1.50 represent the key macro threshold. Traders will watch whether the rally transitions from squeeze-driven gains into sustained organic demand through ETF flows.

MVRV Ratio Flashes Cycle-Bottom Signal

The MVRV ratio compares Bitcoin's current market value to its realized value, the average price at which coins last moved. Sharp vertical rises in this metric have historically preceded major cycle bottoms. Crypto Dan described the rebound as the first powerful signal in this bear cycle, noting that the same pattern appeared at the end of every past downcycle.

XRP outperformed even more dramatically, with the token changing hands near $1.40 after hovering near or below $1 just days earlier. Analysts called this XRP's strongest week since November 2024. The token breached its yearly downtrend resistance, triggering a bullish reversal pattern, according to Rand Group on X.

Technical Levels and What Comes Next

Trader Ted pointed to Bitcoin's powerful weekly candle, which has smashed through multiple resistance zones. The next major test lies between $78,000 and $80,000, and a successful reclaim could signal the end of the bearish structure that has dominated since late 2025.

For XRP, analyst ChartNerdTA emphasizes the weekly 20 and 50 EMAs, currently trading between roughly $1.20 and $1.50. A sustained reclaim of those moving averages would mark a genuine macro bullish shift, while failure to hold above them could trigger consolidation or a deeper pullback toward longer-term support.

The short-term momentum looks undeniable, though the market remains volatile. Bitcoin dominance rose to 57.49 percent, up 1.64 percent, while Ethereum's dominance fell to 10.68 percent. Spot trading volume reached $68.79 billion in 24 hours, up 27.8 percent. A healthy consolidation after such a sharp move would not be unusual and could set the stage for the next leg higher.

Both assets have reminded the market how quickly sentiment can reverse when conditions align. The coming days will reveal whether this breakout marks the start of a durable recovery or a temporary relief rally.

This article is for informational purposes only and does not constitute investment advice.