Bitcoin rallied past $80,000 on August 19 following the largest single-day short liquidation event recorded since 2019, according to blockchain analytics firm Glassnode.
The squeeze liquidated $1.74 billion in short positions across major centralized exchanges on that day, with bears accounting for roughly 85% of all forced position closures. Short liquidations outpaced long liquidations by a 4-to-1 margin during the initial breakout, accelerating the rally as pending stop-loss orders created mechanical buy pressure.
An asymmetrical buildup of short leverage had accumulated over approximately 10 days before the breakout. As bitcoin broke through key resistance levels, the cascade continued through August 22, unwinding an additional $1.22 billion in short positions.
ETF Inflows Sustain Momentum
Spot buying reinforced the initial liquidation-driven rally. U.S. spot Bitcoin ETFs recorded more than $2.2 billion in net inflows during the week following the squeeze, marking the strongest weekly intake of the year. All wallet-size cohorts—from retail to institutional holders—shifted into net accumulation, representing the most consistent buying trend since late 2024.
Wallet clusters associated with exchanges, custodians, and ETF providers added more than 31,500 bitcoin during the rally window.
Major Resistance Ahead
Despite sustained buying pressure, onchain metrics suggest bitcoin faces a structural test. Approximately 1.05 million bitcoin held by long-term holders sit in a cost-basis range between $83,000 and $86,000. Analysts expect this price band to determine whether patient investors sell near breakeven or hold for further gains.
Critical support levels for market bulls remain near $70,000 for short-term holder cost bases and the $62,000 to $65,000 zone.
