Bitcoin Surpasses $86,000 as $1 Billion in Shorts Liquidated, Eyes $90,000
Bitcoin has broken above the $86,000 threshold, clearing a significant level of bearish leverage and reigniting traders' focus on the $90,000 target. The cryptocurrency reached a peak of $87,363 in the past 24 hours, marking its highest price since January, before settling at $85,824, according to data from CryptoSlate.
This upward movement has allowed Bitcoin to reclaim all its major long-term moving averages after being below them for approximately 300 days. Glassnode reported that the price action also pushed Bitcoin above its True Market Mean and short-term holder cost basis, indicating a potential shift towards a sustained bullish market.
On-chain activity surged alongside the price increase, with Bitview data revealing that over 1 million BTC, valued at more than $92 billion, were transacted in the past week. This represents the highest transaction volume in four years, surpassing activity levels observed during Bitcoin's peak in October 2025.
The recent rally has forced many traders who had built short positions around the $86,000 resistance to cover their bets, resulting in the liquidation of more than $1 billion in shorts. Alphractal's Chief Executive, Joao Wedson, noted that this rally has reached the largest short-liquidation zone established over the past year.
With the market now shifting its focus towards $90,000, the dynamics of leverage are changing. Alphractal estimates that long positions now account for approximately 71% of unliquidated positions, compared to 29% for shorts, marking one of the widest gaps since Bitcoin's previous peak in October 2025.
As Bitcoin approaches the $90,000 mark, the options market is also showing increased activity. Deribit data indicates that there is about $2.7 billion of open interest at the $90,000 strike, alongside similar amounts at $95,000 and $100,000. This concentration of risk suggests that traders are increasingly betting on further price increases, rather than merely hedging existing positions.
While the recent surge has been fueled by forced buying from short-covering, the next phase of Bitcoin's price action will depend on new buying interest and whether the rebuilt long exposure can withstand potential pullbacks. The market sentiment has shifted towards bullishness, as reflected in the Fear and Greed Index, which is nearing extreme greed levels.
Updated 12:32 UTC
Latest Developments in the Crypto Market
- The total crypto market capitalization crossed $3 trillion on September 22, 2026, marking a significant recovery since its all-time high of nearly $4.4 trillion in late 2025.
- Bitcoin briefly surpassed $87,000 during a rally, contributing to a single-day market gain of approximately 4.3% and adding over $740 billion in total value since late August.
- Dogecoin emerged as a standout performer, climbing roughly 11% in a single day, while XRP gained 5.7% to reach $1.53.
- Open interest in perpetual futures across the crypto market reached about $160 billion, the highest level since late October 2025, indicating increased market risk.
- Short sellers experienced over $920 million in forced liquidations on September 21, highlighting the volatility in the leveraged market.
- U.S. spot Bitcoin ETFs recorded nearly $1 billion in net inflows on September 21, their largest single-day inflow since October 2025, suggesting a shift toward genuine portfolio allocation in traditional finance.
- The U.S. Treasury's decision to expand long-dated bond buybacks has influenced investor behavior, nudging them toward riskier assets like cryptocurrencies.
FAQ
What recent price milestone did Bitcoin surpass?
Bitcoin has surpassed the $86,000 threshold, reaching a peak of $87,363 before settling at $85,824.
What significant market activity occurred alongside Bitcoin's price increase?
Over $1 billion in short positions were liquidated as many traders were forced to cover their bets due to the price surge.
How has Bitcoin's recent price action affected its long-term moving averages?
The upward movement has allowed Bitcoin to reclaim all its major long-term moving averages after being below them for approximately 300 days.
What does the current market sentiment indicate about Bitcoin's future price movements?
The market sentiment has shifted towards bullishness, with traders increasingly betting on further price increases as reflected in the Fear and Greed Index, which is nearing extreme greed levels.
What is the current open interest in the options market for Bitcoin at the $90,000 strike?
There is about $2.7 billion of open interest at the $90,000 strike, indicating significant trader interest in further price increases.
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