Bitcoin (BTC) consolidated near $31,000 on July 14 after a classic short squeeze sparked new yearly highs.

BTC/USD 1-day chart. Source: TradingView

BTC Liquidates $50M Shorts in New Squeeze

Data from Cointelegraph Markets Pro and transaction view Showing that Bitcoin price action is back at a consolidated support level after a rapid rise the previous day.

Already poised to rise, Bitcoin reacted immediately to news that a U.S. judge upheld the view that altcoin Ripple (XRP) is not a security.

The market sees this as a blow to the regulator, the U.S. Securities and Exchange Commission (SEC), which has been trying in recent months to label altcoins as class securities.

XRP/USD immediately surged more than 100%, almost touching the $1 mark, before returning to around $0.80 at the time of writing. The last time such levels appeared on the chart was in April 2022.

XRP/USD 1-week chart. Source: TradingView

Bitcoin has managed to liquidate $50 million in shorts, albeit in a much more sluggish state, according to monitoring resources coin glass.

BTC/USD liquidation chart (screenshot). Source: CoinGlass

Traders remained cautiously optimistic on the day, despite a Cointelegraph report that bears may still have the upper hand at weekly options expiry.

“Bitcoin failed to break out overnight and could fall back into range here,” said popular trader Yeller. wrote in his latest social media update.

“Waiting to see how the 4-hour candle plays out, but the bulls have some work to do. A little push and we can have fun this weekend.”

Trader Crypto Tony expressed frustration at the lack of a clear breakout of Bitcoin’s long-established trading range.

“Rejection of range highs, so we’re not into bitcoin yet … wait for a solid flip before we get into this,” he Tell The Twitter follower added, “He’ll be disappointed if bitcoin doesn’t flip.”

BTC/USD annotated chart.Source: Crypto Tony/Twitter

Altcoins will now “run at scale”

Meanwhile, the comeback of XRP forms the backdrop for a sharp decline in Bitcoin’s market capitalization dominance.

Bitcoin market capitalization dominates the charts. Source: TradingView

Related: Will Bitcoin Catch Up?BTC was at $40k when the dollar was so weak before

The largest cryptocurrency, which previously accounted for almost 52% of total volume, fell below 50% overnight to near a one-month low.

Traders have hoped that bitcoin will cool off its growing dominance, allowing the altcoin market to reap gains as part of a broader cryptocurrency bull market.

Trader Mustaci concluded the day: “Good things come to those who wait,” predicting that the altcoin boom will continue.

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