Bitcoin’s (CRYPTO: BTC) recovery after a record short squeeze faces a dense supply wall between $81,000 and $86,000 as the key test for continuation, according to a Glassnode report on Thursday.
What Triggered the Rally?
Glassnode analyst Frederik Theissen wrote in the firm’s weekly on-chain report that Aug. 19 produced the largest single-day short liquidation event in Glassnode’s feed since 2019, with 85% of everything liquidated coming from the short side.
The rally consumed 86% of the modelled liquidation clusters in its path, leaving two clear landmarks: a dense shelf of short liquidation levels at $82,000 to $86,000 overhead 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, showing traders did not chase the rally with fresh leveraged longs.
