Bitcoin Supply Wall: The Price of Continuation

A recent short squeeze in Bitcoin has pushed its price to a critical supply wall between $81,000 and $86,000, posing a key test for continuation, according to Glassnode.

The August 19 event saw the largest single-day short liquidation since 2019, with 85% of liquidated assets coming from shorts. The rally consumed 86% of modelled liquidation clusters in its path, leaving two clear landmarks: a dense shelf of short liquidation levels between $82,000 and $86,000, and a band of long liquidation fuel at $60,500 to $62,400 below.

Futures open interest fell 11% in coin terms during the squeeze, while perpetual funding rates stayed near neutral. Glassnode described the move as a stop-cluster flush rather than a crowded long setup.