Record Squeeze Drives Bitcoin Price Rally, But $83K Resistance Looms

A historic short‑squeeze on August 19 triggered a sharp rally in Bitcoin, pushing the price close to $80,000. The event marked the largest single‑day short‑liquidation volume in Glassnode’s data since 2019.

Short‑Liquidation Surge Fuels Price Jump

Glassnode reported that short positions accounted for roughly 85% of all forced closures across major centralized exchanges during the squeeze window. Approximately $1.74 billion in bearish bets were liquidated on August 19, dwarfing $160 million in long liquidations. The pressure continued through August 22, wiping out an additional $1.22 billion in short positions.

Spot Bitcoin ETFs Add Momentum

Following the squeeze, U.S. spot Bitcoin exchange‑traded funds recorded more than $2.2 billion in net inflows during the subsequent week, the strongest weekly intake of the year. Wallet clusters linked to exchanges, custodians and ETF providers added over 31,500 BTC, while all holder cohorts shifted into net accumulation.

Potential Supply Test at $83K‑$86K

On‑chain data shows about 1.05 million BTC held by long‑term investors with a cost basis between $83,000 and $86,000. Analysts view this range as a key test for whether patient holders will sell near breakeven or continue holding. Short‑term holder cost bases near $70,000 and the $62,000‑$65,000 support zone remain critical for the rally’s downside protection.