Bitcoin Short Liquidations Top $7.9B as $80K BTC Price Holds Firm | Crypto ETF News
Crypto ETF news: Bitcoin Short Liquidations Top $7.9B as $80K BTC Price Holds Firm. This update explains what changed, why it matters for institutional adoption, market flows, and investor sentiment, and what the crypto market should watch next.
Institutional And ETF Update
Bitcoin (BTC) may have a clear path to $90,000 after $7.9 billion in short liquidations in February put pressure on the bears. Data show liquidations came in three waves that extended from February through April. The liquidations highlight a growing imbalance as BTC traders continue to build short positions above $80,000, while the price holds firm, creating repeat conditions for future short squeezes.Repeat short squeezes pressure bearsBitcoin researcher Axel Adler Jr. tracked over $7.9 billion in forced short liquidations since early February. The largest spike hit $737 million on Feb. 13, followed by multiple waves through March and April. The liquidation volumes ranged from $2–28 million per day before jumping back to $175 million on May 4. That spike came during a quiet week, pointing to renewed short exposure near $80,000. The pattern shows consistent reloading of bearish positions at higher levels.Bitcoin trend pulse. Source: Axel Adler Jr.The trend pulse data adds context to this behavior. The model moved from bear mode into neutral mode in early April. The short-term momentum has turned positive, while the long-term trend awaits confirmation from a bullish crossover of the 30-day and 200-day simple moving averages (SMAs). Axel Adler Jr. said each major liquidation wave formed while the trend pulse sat in neutral mode, a transition phase after bear mode without a full bullish confirmation. The largest spikes all occurred during this phase. The price was effectively at a crossroads, while traders kept adding short positions. That pattern shows repeated strength fading, followed by forced liquidations, creating pressure that can extend higher if current levels hold above $80,000-$81,500. Related: Bitcoin price nears $82K as ‘big level’ sparks warning of fresh macro rejectionBTC price holds key breakout zone above $80,000Market analyst Coin Niel pointed to continued BTC exchange outflows, with net flows of -837 BTC on May 5. The move signals ongoing accumulation, though smaller than the -6,590 BTC outflows on Monday, keeping the spot sell pressure limited.Bitcoin open interest on all exchanges. Source: CryptoQuantFunding rates hold near -0.0045, suggesting longs are not crowded while the short-side pressure remains active. BTC open interest climbed 6% to $29 billion, its highest level since Jan. 31, increasing sensitivity to large price swings. The BTC price action has turned constructive after Bitcoin broke above a descending trendline that capped rallies through April. The 100-day exponential moving average (EMA) now sits just below the price, acting as dynamic support. BTC is also holding near $81,500, aligned with the short-term holder cost basis, a key level that keeps recent buyers in profit, and may further reduce selling pressure. BTC/USDT on the one-day chart. Source: Cointelegraph/TradingViewThe upside range of $86,000 to $90,000 aligns with a prior supply zone, where sellers stepped in and halted the recovery. This area marks a cluster of past selling activity, with relatively fewer resistance levels before it. Below, the $76,000–$78,000 range serves as the first demand zone, supported by recent activity and a developed daily fair-value gap from last Friday. Crypto trader KriptoHolder noted that liquidation clusters are shaping the near-term direction. The short liquidations sit around $81,000–$82,000, while a larger pool of long exposure rests between $77,000 and $78,000. Data indicates $1.12 billion in cumulative shorts are at risk near $82,500, compared with over $4.2 billion in long positions facing liquidation near $77,000, defining a tight liquidity imbalance.Related: Bitcoin short-term cost basis approaches profitability, but $80K must flip to support firstThis article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research.
Why This ETF News Matters
First, this development may affect institutional demand, exchange flows, market liquidity, and broader investor confidence. In addition, it may influence custody trends, fund positioning, and future crypto product approvals. As a result, traders and investors should watch the next moves closely.
What To Watch Next
Watch for filing updates, approval decisions, inflow and outflow data, custody changes, and asset manager commentary. In particular, any new developments involving BlackRock, Grayscale, Fidelity, or major spot ETF products could directly affect the broader crypto market.
