Bitcoin tests $90,000 as shorts liquidate and leverage builds

Bitcoin surged to a fresh eight‑month high of $86,000, breaking through the $82,000 resistance that had capped the market since August. The breakout triggered roughly $750 million of short position liquidations, adding buying pressure to the rally.

Short squeezes and rising futures exposure

CoinGlass data shows that bearish crypto‑derivative positions were liquidated as Bitcoin cleared $82,000. Schwab’s head of crypto research, Jim Ferraioli, noted a 5 % price rise linked to short perpetual futures liquidations.

Futures open interest has risen sharply, with Coinalyze reporting about $2 billion of new leveraged exposure since the breakout, indicating fresh bets are flowing in even as shorts were wiped out.

ETF flows and spot demand

U.S. spot Bitcoin ETFs experienced $746 million of outflows on Tuesday and Wednesday, followed by inflows of $160 million on Thursday and $433 million on Friday, according to Farside Investors. The average cost basis for ETF buyers now sits around $82,225, marking the first profit‑making point for many investors.

Potential next price targets

Analysts highlighted $87,000 as an immediate level to watch, with the psychological $90,000 mark and a subsequent $92,000 zone as possible next milestones. Wintermute’s OTC trader Jasper De Maere also sees a test of $90,000 as plausible.

Risks and cautions

Traders caution that the rally’s sustainability depends on sustained spot and ETF inflows. Rapid leverage buildup without matching spot demand could reverse the move, as seen in past sharp corrections.

Key indicators to monitor include ETF flow trends, perpetual futures open interest, and the upcoming Friday options expiry.