Bitcoin climbs above $85,000 amid massive short liquidations

Bitcoin broke the $85,000 barrier, gaining more than 5% in the last 24 hours to $85,193. The rally marks the strongest price move since January and extends a 35‑day gain of roughly 29%.

Short liquidations drive buying pressure

Data from CoinGlass show that about $750.5 million of leveraged crypto positions were liquidated in the past day, with roughly $648 million (86%) coming from short sellers. Approximately 137,386 traders were affected. Bitcoin accounted for about $360 million of the liquidations, while Ethereum contributed nearly $171 million. The largest single liquidation was an $11.29 million BTC‑USDT position on Binance.

Derivatives activity spikes

CryptoQuant reported that net taker volume on Binance surged from around $11 million to $618 million within an hour as European markets opened, indicating a rapid shift toward buying. Open interest in Bitcoin derivatives sits near $28.83 billion, close to its May record, leaving a large pool of positions vulnerable to further price swings.

Technical milestones

Bitcoin closed above its 50‑week moving average for the first time since November 2025, ending a 45‑week stretch below that level. It also moved back above its 365‑day moving average near $83,000, a threshold analysts say could attract momentum traders and institutional investors.

On‑chain activity lags price

Despite the price breakout, Santiment observed that new and active Bitcoin addresses remained near median levels between July 24 and September 20. Social activity rose modestly to 1.23 times its baseline, and high‑value transactions (> $100 k) increased to 1.18 times normal, but neither reached recent highs.

Outlook

The rally’s durability now depends on fresh spot demand. While forced buying from short liquidations can push price higher, sustaining levels above $85,000 will require new capital inflows as bearish positions are cleared.