Bitcoin surges past $80,000 as a short squeeze wipes out hundreds of millions in bearish bets
Bitcoin climbed back above $80,000 on 4 November, briefly passing $81,100, as forced closures of short positions accelerated the rally after an earlier dip below $76,000.
Bitcoin climbed back above $80,000 on Wednesday 4 November, briefly passing $81,100, in a sharp reversal from an earlier dip towards $75,600 that had marked its lowest level since mid-September.
The speed of the move was driven by forced selling of bearish bets. According to CoinGlass data reported by crypto.news, short positions worth $378.09 million across the cryptocurrency market were liquidated within a single hour, accounting for about 81 per cent of all forced closures in that hour, while total liquidations in the hour reached $466.33 million including $88.24 million in long positions.
Bitcoin itself accounted for much of the squeeze. CoinMarketCap Academy reported that more than $300 million in Bitcoin short positions were liquidated over 24 hours, with about $222 million in Bitcoin shorts closed within a single hour to about 10:25 a.m. Eastern Time, as exchanges automatically bought back positions to close under-collateralised trades. During the rally Bitcoin traded at around $80,470, up about 4.1 per cent over 24 hours, while ether gained about 6.1 per cent to approximately $2,428.
The rally followed a volatile session in which Bitcoin had first fallen on the United States midterm results, dropping below $76,000 as early results pointed to Democratic gains, before buyers returned and the price recovered through $78,000 and then $80,000. That sequence turned a day that began with heavy selling into one of the strongest short squeezes of the year.
Paradoxically, the rebound came despite heavy selling by exchange-traded funds. Bitfinex reported that US spot Bitcoin ETFs had recorded $1.16 billion in outflows over three trading sessions, the largest withdrawal since late June, and earlier reports noted a fifth consecutive day of ETF selling. The squeeze therefore appears to have been driven more by leveraged derivatives traders being forced out than by fresh spot buying.
The wider market context also weighed on traders. The Binance exchange, which suffered a record $6.3 billion hack in late October, had already seen customers withdraw a net $4.72 billion after reopening, and US investigators have blamed North Korea’s TraderTraitor group for the theft. Against that background, many traders had positioned for further falls, leaving a large pool of short positions vulnerable to a sudden move higher.
On-chain analysts pointed to levels that could shape the next move. Glassnode put support at $73,000 to $76,000, near the short-term holder cost basis of about $75,700, and identified the largest overhead cluster of short liquidations near $87,000, which could add further buying if the price keeps rising. Bitfinex, in an assessment published on 2 November, flagged potential selling pressure in the $84,000 to $85,500 range.
Technical readings remained mixed even as the price recovered. One daily assessment put Bitcoin at about $80,200 on Binance, above its last completed daily close of $77,454 but still short of a convincing reversal, with the daily relative strength index at 38.1 and the daily MACD histogram still negative, and the Bollinger midpoint at $80,407 acting as the nearest resistance.
The market figures in this post are those reported during trading on 4 November 2026, checked at 2026-11-05T02:30:29+05:00 Asia/Karachi time, and different data providers measure liquidation windows differently, so the one-hour, four-hour and 24-hour totals quoted here are not directly comparable with each other.
What happens next is open. Traders are watching whether Bitcoin can hold above $80,000 and build on the squeeze towards the $84,000 to $87,000 zone, or whether it slips back below $78,000 as ETF outflows continue, with Friday’s US jobs report also in view. Either way, Wednesday’s move showed how quickly a crowded bearish trade can reverse when a key level gives way.
This post is market news information only, not financial advice.
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