Bitcoin jumps 26% on short-squeeze dynamics; $81,000–$86,000 flagged as major supply resistance

ChainThink, citing Glassnode, said Bitcoin has rebounded about 26% from its mid-August low, fueled by record short liquidations. Aug. 19 marked the largest single-day short liquidation since 2019, with shorts representing 85% of total liquidations during the squeeze window. Over the same period, coin-margined BTC futures open interest fell 11%, while perpetual funding stayed near neutral. Glassnode said this suggests the rally was not driven by a fresh wave of leveraged long positioning. U.S. spot Bitcoin ETFs posted $2.23 billion in cumulative net inflows over the stretch, with no single-day net outflows. That was the year's strongest seven-day run of consecutive inflows. Glassnode also noted 30-day accumulation trend scores across wallet cohorts rose above 0.5, pointing to broad-based buying. Glassnode highlighted the $81,000–$86,000 band as the key overhead supply zone, where long-term holder cost bases, sell orders, options market-maker gamma-negative positioning, and potential short liquidation levels converge. Holding above $83,300 alongside sustained ETF inflows would suggest this supply is being absorbed. On the downside, Glassnode flagged the short-term holder cost basis near $70,000 and a support area between $62,000 and $65,000.