Bitcoin’s Next Big Move: Are Shorts Gone? Longs About to Blow up!

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<a href="https://bbg-news.com/btc-usd/">Bitcoin</a> Above $81,500: Shorts Cleared, Longs May be Next

Key Takeaways:

  • Short liquidations accelerated sharply above $77,000.
  • Forced short closures generating self-reinforcing buy pressure.
  • Cumulative long liquidations historically far exceed short liquidations.
  • Two scenarios: shorts fully cleared, or FOMO longs become next target.
  • Bitcoin’s move described as active liquidity hunt not simple uptrend.
  • New long positions building at $80K-$81K levels are next risk.

The Chart That Reframes the Move

Bitcoin has climbed past $81,500. The price has steadily increased from $78,400 over the last three days, and technical indicators like moving averages and the Relative Strength Index suggest continued positive momentum. However, data from CryptoQuant shows a different side to this price increase, revealing significant liquidations on Binance.

The chart shows the total value of positions closed due to liquidations – red represents short positions and green represents long positions – from May 2025 to May 2026. Long positions (shown in green) were liquidated far more often than short positions. This has been consistently true throughout the past year, with Bitcoin historically being more likely to eliminate leveraged bets that prices would go up than bets that prices would go down.

As Bitcoin nears $81,000 on the chart, we see a sharp increase in the red area, indicating more short positions are being closed due to losses. This surge in liquidations is driving the current price increase and is likely setting the stage for future price movements.

How the Short Squeeze Works and Why It Is Self-Reinforcing

As an analyst, I observed a rapid series of liquidations begin around $77,000. When Bitcoin’s price moved above that point, many short positions were automatically closed because traders didn’t have enough funds to cover their losses. Each of these forced closures actually required the exchange to *buy* Bitcoin to finalize the transaction, which then drove the price up. This higher price, in turn, triggered even more short positions to be closed, creating a cascading effect.

As a researcher, I’ve been studying this price movement and it appears to be a classic short squeeze. What’s fascinating is it doesn’t actually *need* new buyers to keep going. Instead, it’s fueled by short sellers being forced to cover their positions as the price rises. Looking at the data from Binance, particularly above $77,000, this is exactly what we’re seeing. The rapid clearing of short positions between $80,000 and $81,000 suggests the price isn’t rising due to genuine buying interest, but rather because of leveraged traders being squeezed out of their positions.

This difference is important. When a price increase is fueled by genuine interest, it can last because new investors continue to buy. However, a price surge caused by short sellers covering their positions only lasts until those positions are closed. That’s because the buying wasn’t based on a real belief in the asset’s value, but rather on the need to settle debts and fulfill obligations.

Twelve Months of Data Show Longs Get Hunted More Than Shorts

Looking at liquidations from May 2025 to May 2026 reveals a pattern not visible on price charts alone. The data shows that ‘long’ positions – bets that the price would go up – were consistently liquidated, meaning closed due to losses, regardless of whether the price was rising, falling, or recovering. This happened during the price increase to $125,000, the subsequent drop from that high, and the later rebound toward $81,000.

The market consistently seeks out areas with the most leveraged bets, no matter whether prices are going up or down. When prices climb quickly, it eventually finds a point where many traders are betting prices will continue to rise, leading to a sell-off. Conversely, when prices fall, many traders bet prices will continue to fall, until a surge pushes prices back up.

This recent price surge isn’t unusual. Looking at the price chart over the past year, it’s part of a repeating pattern. A lot of traders bet against Bitcoin when its price fell from around $125,000 to $75,000, and that created a large number of positions that would need to be closed if the price went up. Those positions are now being closed, causing the price increase. Once that’s finished, the big question is: where will the next wave of leveraged trading activity come from?

The Two Scenarios and Which Is More Dangerous

Two scenarios follow the completion of the short squeeze.

Currently, the price is trending upwards, and this is likely to continue. As more traders who bet against the price (known as ‘shorts’) are forced to close their positions, it drives the price even higher. This creates a ripple effect, exceeding many people’s expectations, as long as there are still ‘shorts’ needing to buy back in. The current price chart strongly suggests this is the pattern we’re seeing.

In this situation, as the price goes up, many traders fear they’ll miss out on profits and start buying in around $80,000 to $81,000, trying to capitalize on the increase. However, these new purchases become vulnerable to a price drop. Since there aren’t many sellers left, the market will likely target these new buyers above $80,000 to trigger liquidations.

For traders who recently bought (opened long positions), the current situation is riskier than usual. Over the past year, data shows that losing positions among buyers have been far more common. While we’ve recently seen a surge in losing positions among sellers, this doesn’t break the trend – it simply adds another instance to a pattern we’ve observed repeatedly.

We can clearly define the potential risk, even if we can’t put an exact price on it. Anyone who bought between $78,000 and $81,000 during the recent price surge would lose money if the price falls below that range. Specifically, if the price drops back to $77,000 – the level where the initial selling started – all purchases made during the surge would become unprofitable at the same time.

The Liquidity Hunt Framework

Bitcoin surpassing $81,000 isn’t just a typical price increase; it’s a deliberate attempt to trigger liquidations. Considering the data on recent liquidations helps us understand what’s really happening and shifts our focus to the right questions.

The important question isn’t if Bitcoin’s price will continue to rise – it likely will as traders cover their short bets. Instead, we should be asking what will drive the price *after* those short positions are closed. Looking at the past year, the answer is clear: the market will then target long positions, meaning traders will start betting on further price increases.

Bitcoin staying above $81,000 after the recent rapid price increase confirms a genuine upward trend. Initially, the price jump was fueled by short-sellers being forced to buy back Bitcoin to cover their positions. Now, the price is being supported by new, regular buyers, which indicates this isn’t just a temporary spike, but a sustained move higher.

If Bitcoin can’t stay above $80,000 after traders who bet against it have closed their positions, it would suggest the recent price increase was mainly due to those traders being forced to buy back in, rather than genuine interest. This would likely cause the price to quickly fall back down to the next level of support.

Traders are selling off short positions, and longer-term positions might be next. This pattern has happened before on the chart, and it’s repeating now.

This article is for informational purposes only and shouldn’t be considered financial, investment, or trading advice. Coindoo.com doesn’t support or suggest any particular investment or cryptocurrency. Always do your own research and talk to a qualified financial advisor before investing.

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2026-05-06 00:11