Bitcoin Reclaims $81,000 as Short Sellers Face a New Liquidation Trap

Bitcoin is back above $81,000, and the next stretch of road could be even faster than the climb that got it there.

The reason is not a sudden wave of calm, patient buyers. A dense pocket of short positions is sitting above the market, creating the conditions for another forced-covering rush if Bitcoin pushes higher.

Decrypt reported that Bitcoin’s sharpest five-day rally in two years gained 24.6% while coin-denominated open interest fell 12.6%. Roughly 64,000 BTC in open interest disappeared during that move, and short positions accounted for 89% of liquidated dollars.

The figures came from a joint Glassnode and Bybit derivatives report using data through August 23 across four crypto-native venues. The same report found that Bybit’s volatility index moved four times its normal daily range in one session, while the front of the futures curve repriced far more sharply than longer-dated contracts.

That matters because the data describes a violent reset in near-term positioning, not a uniform repricing across every part of the market. It also excludes CME, so the findings are strongest as a picture of crypto-native derivatives rather than the entire Bitcoin trading universe.

That combination tells a specific story. Bullish leverage did not surge; bearish positions were closed as price moved against them, creating mechanical buying pressure on the way up.

$BTC has reclaimed the True Market Mean.

That puts price back above a crucial level and back into a bullish regime.

Next major overhead is the corporate treasury cost basis around $80k and finally the ETF cost basis at $85k. pic.twitter.com/oySdiazgCE

— glassnode (@glassnode) September 18, 2026

The current setup has a similar pressure point. FXStreet reported that Bitcoin reclaimed Glassnode’s True Market Mean at $76,660 and moved back above the corporate-treasury cost basis near $80,421.

The next major zone runs from roughly $83,000 to $86,000. It includes a thick cluster of potential short liquidations along with the U.S. spot Bitcoin ETF cost basis near $85,638.

bitcoin:native is climbing into a thickening liquidation shelf.

The dense cluster sits around $83k–$86k.

If reached, price could move quickly through this zone as shorts are forced to cover.

These shorts have been building for several weeks. pic.twitter.com/GusozOgKIh

— glassnode (@glassnode) September 18, 2026

A short squeeze can turn resistance into fuel because every forced close requires a purchase. Once that chain starts, the market can move through a crowded zone faster than ordinary spot demand would suggest.

There is a catch. A liquidation-driven rally proves that bearish positioning was crowded, but it does not prove that durable new demand has arrived.

The earlier August move showed that distinction clearly. Options pricing flipped after 361 straight days in which puts carried a richer premium than calls, yet the long end of the futures curve barely moved.

For traders, the next test is straightforward. Holding above reclaimed cost-basis levels would strengthen the case that Bitcoin’s rebound is becoming a broader trend; rejection from the $83,000-to-$86,000 shelf would show that the squeeze ran into real supply.

Either way, the shorts are now part of the story. If Bitcoin reaches their cluster, they may become the buyers that carry it through.

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