Bitcoin Just Flipped! Is the Bottom Finally In? w/ Kris Bullock & Bijan Maleki | Trading the Markets August 26, 2026

**Bijan Maleki** (0:06)
Happy Wednesday, everyone, and welcome back to another edition of Trading the Markets. This is the show where we go over the charts, we look at what's happening in the market, and of course, we take your questions live on air. So if you have any questions, just drop them into the live chat, and we will get to you as many as we can. I'm Bijan Maleki, and of course, we're joined by Kris Bullock aka Blastoplas. Today, we've got a great show for you guys. I'm sure if you've looked at your bags, you're probably feeling, I guess, somewhat optimistic, but we're going to go through a recap of exactly what happened last week in crypto. Yeah, we'll talk about price action, but we're going to dive into the why and the how of it as well, so we can learn a little bit something here today.
And we're also going to look at maybe potentially a few bottoming signals that may or may not have flagged on Kris' radar. Kris, happy Wednesday. How's it going?

**Kris Bullock** (1:07)
Doing well. Doing well. I'm looking forward to this. There's so much to talk about. Last week was crazy, and we touched on it on Monday a little bit, but yeah, last week was crazy. There's all kinds of things to get through. Before we jump into it, though, obviously you can see I have a black chart up and not a white chart, so I wanted to address that first.
I was surprised at how even the votes came out. It did lean more towards the black side, obviously, as I have a black chart. But I thought I honestly expected it to be almost exclusively like white, like white charts all the way. So I was surprised to see that it was even as close as it was.
Obviously, I don't know what to do. Several of you did say do the white charts, they look better. More of you said the black charts look better. So I'm going with the majority, but I feel you, I hear you with the white charts. Continue to just leave comments on both sides going forward. And I'll try to, you know, I mean, I can't please everybody. So I'll try to do what I can do. But yeah, anyway.

**Bijan Maleki** (2:09)
Maybe let's touch it up each week, you know, make one subset happy in the next. Or guys, vote in the comments each week and it can change. It could be a daily battle.

**SPEAKER_3** (2:19)
There you go. There you go.

**Bijan Maleki** (2:21)
The dark background versus the light background. So anyway, Chris, as you are.

**Kris Bullock** (2:25)
Maybe I will change it up, but we'll see. OK, so what we're looking at here is binet liquidations, perp liquidations on binets.
And this is what primarily drove the price action. Now, we know we had catalysts outside of that. We had Bessent come on. We had the Treasury come on, you know, talking about increased bond buybacks and all this stuff. So that was kind of the thing that shifted people's thinking. And a lot of people were short Bitcoin when that announcement came out. And so when Bitcoin started moving up to the upside, when people started buying Bitcoin off the back of that announcement, suddenly all those short positions started to get liquidated. And when short positions get liquidated, that creates like a mechanical forced buying. When a short position is liquidated, you know, a liquidation engine kicks in and automatically buys the position back up. And so it just goes up the order book and does market order buys and just keeps buying, you know, until it exhausts the position. And that creates sort of forced mechanical buying to the upside. That's why the price rips to the north in that situation. Same thing happens to the downside when we have like liquidation cascades when long people get liquidated. Those aren't nearly as fun though, because we're watching price, you know, go through the floor.
So when we have short squeezes, it's a fun day because it means price is rocketing to the upside. But not only did we have a short squeeze, we had like an epic short squeeze, you know, of record proportions. And not only was it just one day, but it was actually three days. And so what we're looking at here, here's on the daily time frame. And I want to kind of zoom out. This goes all the way back to like the end of 2021, sort of in October. And so we can see on the, you know, this line goes way down. So I don't have data prior to that, but just based on the size of the crypto market now and the size of the derivatives market, it's probably safe to assume that this was one of, if not the biggest short squeeze potentially in the history of Bitcoin.