Bitcoin breaks 85,000, but the main force pushing it up isn’t the buyers
Today Bitcoin touched $85,000, a new eight-month high. In the past 24 hours, the entire market saw $750 million in liquidations, including $648 million from short sellers being forcibly liquidated, and 136,000 positions being wiped out.
The mechanism behind this is worth explaining clearly: when the price is pushed upward, short sellers have to buy in passively to close their positions. Those buy-ins then keep pushing the price higher, creating a self-accelerating loop. So a large part of the fuel for this rally comes from the short sellers’ own money.
But there’s one more data point to consider together. Santiment says that the number of new addresses, the number of active addresses, and on-chain transaction volume have all not yet reached their two-month highs. In other words, while the price is rising, the network itself isn’t that hot.
This doesn’t, by itself, constitute a bullish or bearish argument—it only suggests the nature of this upswing: right now it looks more like short-covering rather than new spot demand. Whether spot demand has followed through remains to be seen in the coming days.
I want to ask people trading derivatives: in a market like this—where “shorts get liquidated and price gets pushed up”—do you usually chase it, or do you wait for it to retrace and confirm?
$BTC
Today Bitcoin touched $85,000, a new eight-month high. In the past 24 hours, the entire market saw $750 million in liquidations, including $648 million from short sellers being forcibly liquidated, and 136,000 positions being wiped out.
The mechanism behind this is worth explaining clearly: when the price is pushed upward, short sellers have to buy in passively to close their positions. Those buy-ins then keep pushing the price higher, creating a self-accelerating loop. So a large part of the fuel for this rally comes from the short sellers’ own money.
But there’s one more data point to consider together. Santiment says that the number of new addresses, the number of active addresses, and on-chain transaction volume have all not yet reached their two-month highs. In other words, while the price is rising, the network itself isn’t that hot.
This doesn’t, by itself, constitute a bullish or bearish argument—it only suggests the nature of this upswing: right now it looks more like short-covering rather than new spot demand. Whether spot demand has followed through remains to be seen in the coming days.
I want to ask people trading derivatives: in a market like this—where “shorts get liquidated and price gets pushed up”—do you usually chase it, or do you wait for it to retrace and confirm?
$BTC