Bitcoin Breaks Above $86,000 on Massive Short Squeeze
Bitcoin surged past $86,000 in a massive short squeeze that cleared a key resistance zone. This marks the highest price level for Bitcoin in eight months.
The move was driven by forced liquidations of bearish bets, which turned those positions into rocket fuel for the asset's price. Within a single 24-hour window, over $648 million in short positions were wiped out.
A critical concentration of short positions had piled up between $82,000 and $86,000, identified by analytics firm Glassnode as a short-liquidation wall. Long-term holders accumulated roughly 1.07 million BTC with cost bases in this range, reducing sell pressure as they tend to hold onto their assets when in profit.
Additionally, the breakeven point for US spot Bitcoin ETFs sits right within this neighborhood, estimated between $85,638 and $86,000. This means that once these ETF investors are back in the money, they will be less likely to sell their holdings.