Bitcoin (BTC) has risen about 26% from its mid-August low after a short-liquidation occasion accelerated the rebound. Glassnode mentioned the August 19 transfer produced the biggest one-day liquidation occasion since 2019.
Brief positions accounted for a lot of the liquidations throughout the main centralized exchanges. The precise complete was probably increased as a result of the dataset excludes Hyperliquid.
ETF Demand and Massive Holders Add Help
The squeeze cleared a lot of the liquidation liquidity round Bitcoin. Glassnode now sees short-liquidation ranges above the market and a smaller pool of long-liquidation ranges beneath.
The rebound was not pushed solely by pressured closures, as spot demand additionally supported the transfer. US spot Bitcoin ETFs recorded $2.23 billion of internet inflows over seven days, with no outflow days and their strongest weekly consumption of 2026. The interval included the biggest ETF creation session since mid-January.
In the meantime, Bitcoin continued shifting away from exchanges as pockets teams modified their holdings. Entities holding between 1,000 and 10,000 BTC decreased their balances by 50,500 BTC since June 30.
In distinction, entities holding greater than 100,000 BTC added 59,100 BTC. This group consists of exchanges, custodians and ETF-related wallets.
Through the squeeze week, the custody group added 31,500 BTC. Glassnode mentioned the quantity was related in scale to weekly ETF creations, however the knowledge doesn’t present that the identical cash moved straight into ETFs.
Each wallet-size cohort additionally moved into internet accumulation on Glassnode’s 30-day pattern rating. The agency referred to as it probably the most persistent all-cohort shopping for since late 2024.
Bitcoin Now Faces a Harder Check
Leverage has not returned on the similar tempo as Bitcoin’s worth, with futures open curiosity falling 11% in BTC phrases. Perpetual funding remained close to impartial and later turned damaging, suggesting restricted stress from new leveraged lengthy positions.
Past accumulation and leverage, on-chain knowledge locations current patrons beneath worth, whereas long-term holders present the principle provide zone above it. Bitcoin is now buying and selling between these teams, making a key market take a look at for demand.
A number of indicators level to an analogous provide space overhead, together with cost-basis ranges, ask liquidity, choices positioning and remaining liquidation clusters. A sustained transfer by that zone would present whether or not patrons can take in the obtainable provide.
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