A wave of short liquidations boosts the Bitcoin market, and market analysis points to a rise toward $90k

Driven by BTC’s short squeeze and a rise in open interest, Bitcoin has shown a strong rally. Data indicates that a large number of short positions have been forcibly liquidated: around $1.12 billion in short exposure sits near $82,500. There is a chance the price could move toward $90,000, and a supply-demand imbalance is providing support for the next leg higher.

Short squeeze evolves into upside momentum

Bitcoin researcher Axel Adler Jr. monitoring data shows that since February, the market has accumulated more than $7.9 billion in short liquidations. The liquidation peaks are mainly concentrated from February to April, with February 13 recording a single-day liquidation amount as high as $737 million. Although traders frequently take short positions above $80,000, price resilience has forced these positions into a Short Squeeze—price increases that trigger stop-loss selloffs, which in turn amplify the rally. On May 4, the liquidation volume surged again to $175 million, indicating that even in the higher price range, short positions continue to face the risk of being forcibly closed. This dynamic equilibrium has cleared the path for Bitcoin to move toward $90,000.

Trend Pulse shifts to a bullish mode

Based on the Trend Pulse model, market sentiment had already shifted from a bearish mode to a neutral mode in early April. The current short-term momentum has turned positive. Analysts are watching whether a “golden cross” forms on the 30-day and 200-day Simple Moving Average (SMA) to confirm a longer-term bullish trend. The analysis notes that most large-scale liquidations occur during the transitional phase of trend reversals. At this point, the market sits at a crossroads where bulls and bears are in a standoff. If Bitcoin can continue to hold above $80,000 to $81,500, bearish pressure will further build, triggering more short covering and forming a positive price feedback loop.

Flows of capital reveal the support strength

According to analyst Coin Niel, Bitcoin exchanges have recently continued to show a net outflow trend. On May 5, there was a net inflow of 837 BTC, but compared with the prior day’s net outflow of 6,590 BTC, spot selling pressure is clearly more limited. The funding rate remains around -0.0045, a key indicator showing that the long side has not become overly crowded and that bearish pressure still persists. In addition, Bitcoin open interest has risen 6% to $29 billion, reaching a new high since the end of January, reflecting increased sensitivity in the market to sharp price volatility. From a technical perspective, the 100-day Exponential Moving Average (EMA) has become a dynamic support below, strengthening the current bullish structure.

Why is the $90,000 target zone supported?

After Bitcoin broke above April’s downward trendline, the short-term holding cost is around $81,500. This level helps ensure that recent buyers remain profitable, reducing the likelihood of stop-loss selloffs. The main overhead pressure zone lies between $86,000 and $90,000, an area of prior concentrated supply that has repeatedly stalled rebounds. Support below is seen between $76,000 and $78,000, which includes the recent high-activity trading area and a Fair Value Gap. According to trader KriptoHolder’s analysis, the current liquidation map shows short exposure of about $112 million near $82,500, with liquidity distribution currently guiding price toward higher ranges.

This article says the short liquidation wave is pushing the Bitcoin rally, and market analysis points to a move up toward $90,000. It first appeared on Chain News ABMedia.