Bitcoin Climbs Near September Highs with Shorts Poised for Liquidation
Bitcoin (BTC) has surged back near its September highs, trading above $86,000 on Monday. This marks the highest level since September 21, when it reached approximately $86,597. The cryptocurrency's price is up over 3% for the week, with a 1% gain in the past 24 hours. Analysts have noted a significant concentration of leveraged short positions near $90,000, which could amplify a breakout if the price reaches that level.
On-chain analyst James Check of Checkonchain highlighted that futures leverage has been declining, with funding rates remaining below 4% annually. This suggests limited appetite for borrowed bets. Long-term holders appear to be sitting on their hands, leaving spot market buyers to drive the price higher. Glassnode identified the largest liquidation cluster near $90,000, where leveraged shorts would be forced to close positions, potentially adding to the upward momentum.
Glassnode also noted that long-term Bitcoin holders have remained in profit throughout this cycle, a phenomenon not observed in any bear market since at least 2015. This is tracked using the LTH-MVRV measure, which compares the current value of holders' coins against their purchase price. Analyst Michaël van de Poppe echoed this sentiment, stating that this cycle is different from previous ones due to smaller upside movements in the bull market.
Bitcoin's 200-week moving average has continued to rise, now sitting at approximately $66,000. This long-term gauge has historically acted as a floor during past cycle lows, providing traders with a sense of stability.