{"id":32995,"date":"2026-10-02T11:38:17","date_gmt":"2026-10-02T10:38:17","guid":{"rendered":"https:\/\/investx.fr\/en\/2026\/10\/02\/bitcoin-87800-short-squeeze-120-million-liquidations\/"},"modified":"2026-10-02T11:38:25","modified_gmt":"2026-10-02T10:38:25","slug":"bitcoin-87800-short-squeeze-120-million-liquidations","status":"publish","type":"post","link":"https:\/\/investx.fr\/en\/crypto-news\/bitcoin-87800-short-squeeze-120-million-liquidations\/","title":{"rendered":"Bitcoin Surges to $87,800: Over $120M in Short Positions Liquidated in Hours"},"content":{"rendered":"\n

Bitcoin<\/strong> has just cleared a major technical milestone, reaching $87,800<\/strong> \u2014 its highest level in several weeks. The move triggered a cascade of short liquidations<\/strong>, surpassing $120 million<\/strong> in just a matter of hours.<\/p>\n\n\n\n

Behind this breakout lies a precise market mechanic: an ask liquidity wall<\/strong> absorbed by buyers, an order book<\/strong> repositioning itself, and resistance shifting higher. Here is what the data reveals.<\/p>\n\n\n\n

This rally raises a central question: is this a genuine bullish reversal<\/strong> or simply a short squeeze<\/strong> before another round of consolidation?<\/p>\n\n\n\n

Ask Liquidity Wall Broken: The Mechanics of the Breakout<\/h2>\n\n\n\n

To understand this move, you need to look at the order book<\/strong>. Bitcoin<\/strong> had been trading for several days beneath a dense zone of ask liquidity<\/strong> \u2014 sell orders stacked between $85,000 and $87,000 that were capping any meaningful upside. Buyers ultimately absorbed that selling pressure in a single sweep, propelling the price to $87,800<\/strong>, a new October high.<\/p>\n\n\n\n

This type of absorption breakout<\/strong> is characteristic of a market where institutional demand or forced short covering is fueling the move. Data from CoinGlass<\/strong> confirms that short liquidations<\/strong> exceeded $120 million<\/strong> across derivatives exchanges<\/strong>, with Binance<\/strong> and Bybit<\/strong> leading the way. This short squeeze<\/em> effect mechanically amplifies the rally: every liquidated position generates a forced buy order that pushes the price even higher.<\/p>\n\n\n\n

\"Bitcoin<\/figure>\n\n\n\n

The $87,000\u2013$88,000<\/strong> zone now represents the new resistance level<\/strong> to watch. The order book<\/strong> shows that fresh sell-side positions have already rebuilt above this range, which could slow short-term progress.<\/p>\n\n\n\n

Market Sentiment and On-Chain Data: The Signals Confirming the Rally<\/h2>\n\n\n\n

Beyond pure price action<\/strong>, several on-chain<\/strong> and sentiment indicators reinforce the bullish reading of this move. The funding rate<\/strong> across major perpetual exchanges<\/strong> remains positive but moderate, meaning the market is not yet overheating \u2014 a reassuring signal for the sustainability of the rally. An excessively elevated funding rate<\/strong> would instead point to overleveraged conditions capable of triggering a sharp reversal.<\/p>\n\n\n\n

On the spot flow<\/strong> side, US Bitcoin ETFs<\/a><\/strong> recorded significant net inflows over the past few sessions, according to data from CryptoQuant<\/strong>. This sustained institutional demand<\/strong> provides a fundamental foundation that purely speculative moves cannot replicate. It signals that real capital is entering the market, not just leveraged positions.<\/p>\n\n\n\n

Key technical levels to watch from here: holding above $85,000<\/strong> as immediate support<\/strong> would validate the bullish structure<\/strong>. Should price get rejected below $87,000<\/strong>, a consolidation between $84,000<\/strong> and $86,500<\/strong> would remain a healthy scenario before a potential attempt at $90,000<\/strong> \u2014 a major psychological threshold<\/strong> the market has not retested in several months.<\/p>\n\n\n\n

$90,000 in Sight: What Could Accelerate or Stall the Rally<\/h2>\n\n\n\n

The next natural target for Bitcoin<\/a><\/strong> sits around $90,000<\/strong>. But several factors could determine the speed and strength of that move. On the positive catalyst side, Bitcoin’s correlation with equity markets<\/strong> remains a key driver: any signal of monetary easing<\/strong> from the Fed<\/strong> or relief on interest rates could amplify risk appetite and push BTC<\/strong> toward new highs.<\/p>\n\n\n\n

On the flip side, short-term risks are not absent. The $87,500\u2013$88,500<\/strong> zone now concentrates significant ask liquidity<\/strong>, rebuilt in the wake of the breakout. If buyers fail to sustain the pressure, a retracement toward $84,000<\/strong> or even $82,000<\/strong> remains plausible without calling the broader underlying structure<\/strong> into question. The RSI<\/strong> on the daily chart is approaching overbought<\/strong> territory, which argues for a gradual digestion of the move rather than an immediate vertical acceleration.<\/p>\n\n\n\n

In this context, experienced traders will be watching the weekly close<\/strong> closely: a close above $86,000<\/strong> would represent a strong technical signal<\/a><\/strong> in favor of a bullish continuation toward the upper five-figure range.<\/p>\n\n\n\n

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