Bitcoin reclaimed $85,000 after recovering from a pullback toward $76,000, marking the first time the asset reached this level since January. The price acceleration came as buyers reversed earlier weakness and pushed BTC through key resistance zones toward $87,000.
Exchange inflows did not prevent the rally from continuing. Binance received roughly 4.6K BTC around September 15, followed by an additional 2.4K BTC on September 21 as the price climbed higher. The continued upward movement suggests buyer interest absorbed the incoming supply.
Short Liquidations Drive the Move
A significant portion of the buying pressure stemmed from forced short closures rather than organic spot demand. In a 24-hour period, total crypto liquidations reached $1.06 billion, with short liquidations accounting for $844.03 million. Bitcoin alone contributed $611.99 million of those shorts.
The largest wave of liquidations occurred as the price rose above $80,000, forcing bearish positions to close into a rapidly rising market. This created a feedback loop: rising prices triggered short liquidations, which added further buying pressure and accelerated the move upward.
Sustainability Questions Remain
While liquidations provided temporary support for the breakout, this dynamic cannot continue indefinitely. Once short positions fully clear, Bitcoin will need genuine spot demand to sustain the $85,000 level and absorb ongoing supply.
If BTC holds above $85,000, it would strengthen the continuation of the current rally. However, any renewed inflows could apply downward pressure if underlying demand weakens. The rally's durability depends on whether sustained spot buying can defend the breakout.
