Bitcoin Reclaims $85K Amid Massive Short Liquidations

Bitcoin has reclaimed the $85,000 level for the first time since January, marking a significant shift in momentum for the short term. The recovery from $76,000 was rapid and sustained, with buyers absorbing large exchange inflows and reversing a deep pullback into a move above a key resistance zone.

The buying interest during this move also absorbed any potential selling pressure, suggesting that investor demand continued to absorb any supply. In fact, the price of Bitcoin continued higher despite receiving roughly 4.6K BTC on Binance around September 15th and another 2.4K BTC on September 21st.

The absorption was not driven solely by organic demand; it was largely fueled by massive short liquidations. Crypto liquidations reached $1.06 billion in a period of 24 hours, with shorts accounting for $844.03 million. Bitcoin alone recorded $611.99 million of those short liquidations, showing where much of the forced demand emerged.

However, this support is temporary because liquidations cannot continue indefinitely. Once the short positions clear, Bitcoin needs genuine spot demand to absorb supply and defend the $85,000 breakout.