On October 21, 2026, Bitcoin moved back over $84,000, which sparked a wave of forced closures among traders wagering on price drops. Bitstamp recorded the cryptocurrency briefly near $84,739 before hourly trading settled around $84,376. This rebound came after a drop down to between $82,200 and $82,600. Over a 24-hour window, Bitcoin added about 1.5% to 2.7%, creating heavy pressure on leveraged short trades across the digital asset market.
Figures from CoinGlass at 11:20 a.m. on Wednesday indicated total cryptocurrency liquidations reached $243.04 million during the preceding 24 hours. Bets against the market made up $188.14 million, representing 77.4% of the aggregate. Long positions accounted for the remaining $54.89 million.
Out of all liquidations, Bitcoin totaled $78.42 million, with close to 94% originating from short bets. Ethereum came next at $47.99 million, and Zcash saw about $14.80 million in wiped out positions.
An $8.74 million Ethereum short on Binance marked the biggest single liquidation event. Across the entire leveraged crypto landscape, 71,223 traders had their positions closed. Binance represented roughly 44% of all wiped out accounts.
Bitcoin Short Squeeze Pushes Prices Higher
The bounce in Bitcoin created a domino effect as platforms shut down short trades that lacked sufficient collateral. Traders using borrowed funds to bet against an asset experience forced liquidations when values increase past their allowable limits.
These closures frequently force participants to repurchase the asset, introducing extra buying momentum. Consequently, rising values can spark additional liquidations and drive prices even higher.
Data from Wednesday demonstrated how fast this pressure accumulated. Liquidations hit $144.68 million over a four-hour window, while the one-hour total reached $68.12 million. The 12-hour metric rose to $182.52 million as leveraged holdings were cleared from the system.
This short squeeze aided Bitcoin in pushing back past $84,000, though the action does not yet signal a wider market breakout.
Bitcoin Faces Resistance Between $84,000 and $85,000
Bitcoin stays inside its October trading channel, with the $84,000 to $85,000 barrier continuing to draw selling interest. Recent capital flows into United States spot Bitcoin exchange-traded funds provided extra backing.
At the same time, growing open interest points to leveraged traders opening new positions as rates recover. Such activity might heighten market swings if Bitcoin fails to maintain its recent progress. A lasting break past $85,000 could clear a path toward $86,500 and $86,700. Conversely, another rejection might pull $82,000 back into view, with $80,000 acting as a lower support target.
The upcoming October policy choice by the Federal Reserve remains another element for market participants to monitor. High oil prices persist in complicating the inflation picture, introducing market uncertainty. The FedWatch tool from CME currently shows an 81% probability that the Federal Reserve keeps interest rates steady at the upcoming gathering.
At present, Bitcoin moving back above $84,000 has placed bearish traders under stress. The upcoming test is whether ongoing buying interest can sustain higher prices once the forced buying from liquidated short positions subsides.
