Bitcoin Breaks $86k, Sets Sights on $90k with Short Positions Wiped Out

Bitcoin's price cleared $86,000 after a rapid breakout, pushing aside $1 billion in short positions. The largest cryptocurrency has now reclaimed its major long-term moving averages and is trading above several key levels. According to Glassnode, the price action helped BTC reclaim all of its major long-term moving averages after spending about 300 days below them.

The combination of on-chain activity and derivatives positioning suggests that traders are rebuilding long exposure as the short-heavy $86,000 zone was cleared. Alphractal estimates that longs account for about 71% of remaining unliquidated positions, compared with 29% for shorts. This shift in leverage means that much of the short-covering that accelerated the move through $86,000 has already been spent.

The next leg of Bitcoin's price action will depend on new buying and whether recently rebuilt long exposure can withstand a pullback. Options positioning is pushing the next test toward $90,000, with about $7.7 billion of exposure across the three levels at $90,000, $95,000, and $100,000.