Bitcoin's Short Squeeze Ignites Retail Frenzy for $126,000 Target

Bitcoin's recent surge has left many wondering if the bottom is indeed in. The cryptocurrency rallied from $62,900 on August 16 to $79,500 just five days later, a 26% move that pushed prices near $77,000 by Saturday.

According to trader MARMOT, this wasn't an organic rally but rather a classic short squeeze, which saw $3.1 billion in shorts wiped out.

The sudden price action has caught retail investors' attention, with many now eyeing a target of $126,000. Geoff Kendrick, Standard Chartered's global head of digital assets research, had previously cut his year-end call from $150,000 to $100,000 but now sees a retest of the record high.

However, some traders are cautioning against FOMO, or fear of missing out. Crypto Kit warned that there is still no reason to jump in with both feet, as what's stopping the market from pulling back 10%? Nothing.