Bitcoin (BTC) may have a clear path to $90,000 after $7.9 billion in short liquidations in February put pressure on the bears. Data show liquidations came in three waves that extended from February through April. The liquidations highlight a growing imbalance as BTC traders continue to build short positions above $80,000, while the price holds firm, creating repeat conditions for future short squeezes.
Repeat short squeezes pressure bears
Bitcoin researcher Axel Adler Jr. tracked over $7.9 billion in forced short liquidations since early February. The largest spike hit $737 million on Feb. 13, followed by multiple waves through March and April.
The liquidation volumes ranged from $2–28 million per day before jumping back to $175 million on May 4. That spike came during a quiet week, pointing to renewed short exposure near $80,000. The pattern shows consistent reloading of bearish positions at higher levels.
Bitcoin trend pulse. Source: Axel Adler Jr.
The trend pulse data adds context to this behavior. The model moved from bear mode into neutral mode in early April. The short-term momentum has turned positive, while the long-term trend awaits confirmation from a bullish crossover of the 30-day and 200-day simple moving averages (SMAs).
Axel Adler Jr. said each major liquidation wave formed while the trend pulse sat in neutral mode, a transition phase after bear mode without a full bullish confirmation.
The largest spikes all occurred during this phase. The price was effectively at a crossroads, while traders kept adding short positions.
That pattern shows repeated strength fading, followed by forced liquidations, creating pressure that can extend higher if current levels hold above $80,000-$81,500.
Related: Bitcoin price nears $82K as ‘big level’ sparks warning of fresh macro rejection
BTC price holds key breakout zone above $80,000
Market analyst Coin Niel pointed to continued BTC exchange outflows, with net flows of -837 BTC on May 5. The move signals ongoing accumulation, though smaller than the -6,590 BTC outflows on Monday, keeping the spot sell pressure limited.
.png?prefix=media%2Fcontent)
Bitcoin open interest on all exchanges. Source: CryptoQuant
Funding rates hold near -0.0045, suggesting longs are not crowded while the short-side pressure remains active. BTC open interest climbed 6% to $29 billion, its highest level since Jan. 31, increasing sensitivity to large price swings.
The BTC price action has turned constructive after Bitcoin broke above a descending trendline that capped rallies through April. The 100-day exponential moving average (EMA) now sits just below the price, acting as dynamic support.
BTC is also holding near $81,500, aligned with the short-term holder cost basis, a key level that keeps recent buyers in profit, and may further reduce selling pressure.
BTC/USDT on the one-day chart. Source: Cointelegraph/TradingView
The upside range of $86,000 to $90,000 aligns with a prior supply zone, where sellers stepped in and halted the recovery. This area marks a cluster of past selling activity, with relatively fewer resistance levels before it.
Below, the $76,000–$78,000 range serves as the first demand zone, supported by recent activity and a developed daily fair-value gap from last Friday.
Crypto trader KriptoHolder noted that liquidation clusters are shaping the near-term direction. The short liquidations sit around $81,000–$82,000, while a larger pool of long exposure rests between $77,000 and $78,000.
Data indicates $1.12 billion in cumulative shorts are at risk near $82,500, compared with over $4.2 billion in long positions facing liquidation near $77,000, defining a tight liquidity imbalance.
Related: Bitcoin short-term cost basis approaches profitability, but $80K must flip to support first
