Bitcoin Breaks Above $85K as Short Liquidations Fuel Price Surge
Bitcoin's recent recovery has gained momentum as it reclaimed $85,000 for the first time since January. The price rose from around $76,000 to over $87,000 in a rapid move that also saw Bitcoin overcome key resistance zones.
The buying interest during this period absorbed large exchange inflows, with Binance receiving around 4.6K BTC on September 15th and another 2.4K BTC on the 21st of September as the price pushed higher.
However, it's worth noting that much of the spot volume was driven by short sellers forced to cover their losing positions during the squeeze, rather than organic demand.
According to CryptoQuant, if Bitcoin holds above $85,000, it will strengthen the continuation of the current rally. Conversely, any renewed inflows may cause downward pressure on the rally should demand begin to weaken.