Bitcoin climbs to $81,000 as shorts unwind

Bitcoin jumped about 5% to around $81,000 on Thursday as a sharp rebound forced leveraged traders betting on lower cryptocurrency prices to close positions, accelerating gains across the digital-asset market.

The move lifted the world’s largest cryptocurrency back towards the upper end of its August trading range after it had spent much of the day around $77,000-$78,000. Market data showed heavy short-side liquidations as Bitcoin pushed through resistance near $80,000, although the widely circulated claim that about $140 million in crypto shorts was liquidated within 60 minutes could not be independently confirmed from a single authoritative real-time source.

Bitcoin’s advance took it close to levels that traders have treated as an important technical barrier. The cryptocurrency had traded above $81,000 in late August before slipping back, and analysts have identified the $81,000-$83,000 region as a significant area of overhead supply. A sustained break above that zone would mark a stronger departure from the consolidation that followed the late-August rally.

Liquidations can amplify price moves in cryptocurrency markets because leveraged short positions are automatically closed when losses erode traders’ margin. Exchanges buy back the underlying exposure when those positions are forced out, adding further demand to an already rising market. CoinGlass, which tracks derivatives liquidations across major exchanges, showed elevated forced closures during the latest burst of volatility.

The rebound came after Bitcoin had traded near $77,800 earlier on Thursday, with investors weighing the outlook for US interest rates, Treasury yields and broader risk appetite. Those macroeconomic factors have remained important for crypto markets because tighter financial conditions can strengthen the dollar and reduce demand for higher-risk assets, while expectations of easier policy can have the opposite effect.

Technical analysts have also been watching Bitcoin’s ability to hold above key moving averages after its rebound from 2026 lows. Chart-based analysis published on Thursday placed resistance around the May high near $82,793, with support lower down around $75,700 and $71,800. Those levels are not forecasts but are widely monitored reference points that can influence short-term positioning.

The latest jump also underscored the role of derivatives in driving intraday cryptocurrency volatility. Short squeezes can develop rapidly when an initial price rise forces leveraged bearish bets to close, prompting additional buying and triggering further liquidations. The process can produce sharp upward moves even when underlying spot-market demand is less dramatic.

Market participants were therefore watching whether spot buying and trading volumes would support the move after the first liquidation-driven burst. Bitcoin’s previous push above $81,000 in late August was followed by a retreat into the high-$70,000 range, highlighting the difficulty the cryptocurrency has faced in establishing a durable foothold above the threshold.

Futures positioning had become important because the market was approaching a cluster of resistance that had repeatedly attracted sellers. When prices cross those levels, traders using high leverage can have little time to add collateral before exchanges close their positions. That can turn a rally into a squeeze and make headline liquidation totals change from minute to minute.

The speed of Thursday’s reversal was notable because Bitcoin had been struggling to clear $78,000 earlier in the session. That left bearish positions vulnerable once buying carried the token through successive resistance levels and momentum accelerated above $80,000.

Broader crypto assets also moved with Bitcoin during the rebound, as is common when the largest token sets the direction for market sentiment. Ether and other large-cap cryptocurrencies had faced pressure earlier in the session amid risk-off trading and sizable long liquidations, before the later reversal shifted pressure towards short positions.

Bitcoin’s market capitalisation was again around the $1.6 trillion region as the token approached $81,000. The price remained below its 2026 high near $97,900, leaving the cryptocurrency well short of the year’s peak despite the strong one-hour move.