Bitcoin Climbs Near September High Amid $90K Short Squeeze Focus

Bitcoin (BTC) traded near $86,300 on Monday, approaching its highest level since late September. The cryptocurrency has seen a steady climb, up over 3% for the week and nearly 1% in the past 24 hours. Analysts noted that the rise has been driven primarily by spot market buyers rather than leveraged traders, as futures leverage continues to decline and funding rates remain low.

Glassnode identified a significant liquidation cluster near $90,000, where a concentration of leveraged short positions could amplify a breakout if Bitcoin’s price reaches that level. Smaller clusters exist at $83,000 and $75,000, which could also influence price movements. The firm emphasized that either side of this cluster could accelerate the next move.

Long-term Bitcoin holders have remained profitable throughout the current cycle, a trend not observed in past bear markets since 2015. Glassnode’s LTH-MVRV measure, which compares the value of long-term holders’ coins to their purchase prices, has stayed above 1, indicating ongoing profitability. Analyst Michaël van de Poppe noted that this cycle differs from previous ones, describing it as the 'final easy cycle.'

Adam Back, CEO of Blockstream, highlighted that Bitcoin’s 200-week moving average has risen above $66,000, a level historically treated as a long-term floor. The cryptocurrency has spent most of its history above this average, reinforcing its significance as a support level.