There are now more than $4 billion in long positions within striking distance of liquidation near $77,000 – a figure that underscores just how beneficial Bitcoin is as it maintains its current position above $80,000.
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The Bears keep rebuilding, and they keep burning
Data Tracked by Bitcoin researcher Axel Adler Jr., it shows that nearly $8 billion in short positions have been forcibly closed since early February, with the largest single-day spike of $737 million on February 13.
The liquidations did not happen all at once. They arrived in three separate waves spanning from February to April, each one triggered when bearish traders rebuilt their positions at higher price levels – only to be caught out again as the price held steady.
Daily liquidation volumes fell to between $2 million and $28 million before rising again to $175 million on May 4. The jump came during a quiet week, suggesting new short exposure is building near $80,000.
Reports say that the recurring pattern shows that traders are constantly betting against the price – and are constantly being forced out.
Source: Axel Adler Jr.
Adler’s trend pulse pattern adds context. Bitcoin He moved from bear mode to neutral territory in early April. Short-term momentum has turned to the positive side, although a full bullish signal would require the 30-day SMA to break above the 200-day level.
According to the data, every major liquidation wave so far has occurred while the trend has remained in this neutral zone — a transition phase that has caught short sellers by surprise time and time again.
Rising open interest adds to the pressure
Bitcoin Open interest The value of coins across all exchanges rose 6% to nearly $30 billion as of early May, the highest reading since January 31. This increase means that the market is more sensitive to sudden price movements – up or down.
Funding rates are still near -0.0045, which is a sign that the short side squeeze is still active while long positions are not crowded yet.
Market analyst Coin Niel reported net exchange flows From 837 BTC on May 5, after a much larger inflow of 6,590 BTC the previous Monday.
Sustained outflows typically reflect accumulation, as coins move from exchanges to private wallets, reducing the supply available for immediate sale.
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Bitcoin broke above the downtrend line that capped price gains throughout April. The 100-day EMA is now just below the current price, acting as a dynamic floor.
The short-term cost basis of the stand is approaching $81,500, a level that keeps new buyers profitable and may reduce selling pressure further in the near term.
The supply area is in front, with a large depression below
The range from $86,000 to $90,000 represents an area of prior selling activity – a range where sellers intervened during the recent recovery and pushed the price lower. This area is the next major test for any sustained rally.
Featured image from Vecteezy, chart from TradingView
