Bitcoin climbed back above $84,000 on October 21, 2026, triggering a wave of liquidations among traders betting on further price declines. The cryptocurrency briefly approached $84,739 on Bitstamp before trading near $84,376 on the hourly chart. The recovery followed a dip toward $82,200 to $82,600. Bitcoin gained roughly 1.5% to 2.7% over 24 hours, putting pressure on leveraged short positions across the crypto market.
CoinGlass data recorded at 11:20 a.m. on Wednesday showed $243.04 million in cryptocurrency liquidations over the previous 24 hours. Short positions accounted for $188.14 million, or 77.4% of the total. Long positions made up the remaining $54.89 million.
Bitcoin accounted for $78.42 million in liquidations, with nearly 94% coming from short positions. Ethereum followed with $47.99 million, while Zcash recorded approximately $14.80 million in liquidated positions.
The largest single liquidation was an $8.74 million Ethereum short position on Binance. Across leveraged crypto markets, 71,223 traders were liquidated. Binance accounted for approximately 44% of the positions wiped out.
Bitcoin Short Squeeze Pushes Prices Higher
Bitcoin’s recovery triggered a chain reaction as exchanges closed short positions that no longer had enough collateral. Traders who borrow funds to bet against an asset face forced closures when prices rise beyond their positions’ limits.
These closures often require traders to buy back the asset, adding further buying pressure. As a result, rising prices can trigger more liquidations and push prices even higher.
Wednesday’s figures showed how quickly the pressure built. Liquidations reached $144.68 million over four hours, while the one-hour total stood at $68.12 million. The 12-hour figure climbed to $182.52 million as leveraged positions were forced out of the market.
The resulting short squeeze helped Bitcoin recover above $84,000. However, the move does not yet confirm a broader market breakout.
Bitcoin Faces Resistance Between $84,000 and $85,000
Bitcoin remains within its October trading range, with the $84,000 to $85,000 zone continuing to attract selling pressure. Recent inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) have offered additional support.
Meanwhile, rising open interest suggests leveraged traders are rebuilding positions as prices recover. This could increase market volatility if Bitcoin fails to hold its recent gains. A sustained move above $85,000 could open the way toward $86,500 to $86,700. However, another rejection could bring $82,000 back into focus, with $80,000 serving as a deeper downside target.
The Federal Reserve’s upcoming October policy decision is another factor for traders to watch. Elevated oil prices continue to complicate the inflation outlook, adding uncertainty to the market. CME’s FedWatch tool currently indicates an 81% chance that the Federal Reserve will leave interest rates unchanged at its next meeting.
For now, Bitcoin’s return above $84,000 has put bearish traders under pressure. The next challenge is whether sustained buying demand can keep prices rising after the forced purchases from liquidated short positions fade.