Bitcoin Squeezes Shorts to $86,000 as ETFs Return to Profit

Bitcoin has broken through the $86,000 resistance zone after months of struggling to surpass it. This move represents the highest price level for Bitcoin in eight months and was largely driven by a wave of forced liquidations that turned bearish bets into rocket fuel.

The sudden surge was caused by over $648 million in short positions being wiped out within a 24-hour window, with brokers buying Bitcoin to close these positions. This in turn pushed the price higher, leading to further liquidations and amplifying the upward momentum.

According to Glassnode, long-term holders accumulated around 1.07 million BTC with cost bases in the $83,000 to $86,000 area, meaning a significant portion of patient investors are now back in profit and less likely to sell their holdings.

The breakeven point for US spot Bitcoin ETFs also sits within this range, estimated between $85,638 and $86,000. This means that the collective ETF investor base is now in the money, adding another layer of demand to the market.