As bitcoin broke above $86,000, more than $1 billion in short positions were liquidated, and $90,000 resurfaced as the market’s next target level.

On Sept. 22 (local time), blockchain outlet CryptoSlate reported bitcoin rose as high as $87,363 over the past 24 hours, the highest level since January.

The rise is significant because it pushed through the $82,000 to $86,000 band that had blocked the rally for months. Positions betting on a decline were concentrated in that range. Once the price broke the resistance, selling pressure instead turned into forced buying demand. CoinGlass data showed more than $1 billion in short positions were liquidated during the surge.

On-chain and derivatives indicators also reacted at the same time. Glassnode said bitcoin has recovered all key long-term moving averages it had stayed below for about 300 days. It also said bitcoin is trading above the True Market Mean and the short-term holder average cost basis, presenting that as a benchmark that separates a strong uptrend phase.

Network activity also expanded. Bitview data showed more than 1,000,000 bitcoin moved over the past week, worth more than $92 billion. That was the biggest transaction volume in the past four years and exceeded the activity level seen near the October 2025 peak.

Still, the market structure has already begun to shift once. Joao Wedson (조앙 웨드손), chief executive of Alphractal, said this rally has reached the largest short-liquidation zone formed over the past year. He said after leveraged long positions were cleared first during the decline, short positions were also liquidated in large numbers this time, resetting the derivatives-market positioning structure.

Leverage is now building again on the upside. Alphractal estimated that among positions not yet liquidated, longs account for about 71 percent and shorts 29 percent. That is one of the widest gaps since near the all-time high in October 2025. Glassnode also noted that as bitcoin trades around $86,000, long leverage in the options market is gradually returning. It added that speculative overheating remains lower than in the previous peak phase, and perpetual futures funding rates are at neutral or below.

A broader recovery in derivatives has also been confirmed. Santiment said total crypto open interest rose about 7.6 percent to around $156 billion, and trading volume also rose 39 percent. That shows participants are rebuilding positions relatively quickly rather than cutting leverage after the short squeeze.

Against that backdrop, $90,000 has emerged as the next key test. Deribit data showed bitcoin options open interest is concentrated at about $2.7 billion at a $90,000 strike, about $2.7 billion at $95,000 and about $2.3 billion at $100,000. Exposure tied to those three levels totals about $7.7 billion. At current prices, bitcoin needs a rise of less than 5 percent to reach $90,000.

A variable is that the nature of upward momentum has changed. In the move above $86,000, mechanical demand from shorts buying back to limit losses amplified the rally. But with much of that buying pressure now spent, fresh funds need to flow in for bitcoin to move stably above $90,000. It also needs to be checked whether the long positions that have started building again can hold through a pullback phase.

Market sentiment is also heating up quickly. Santiment said optimistic discussion about bitcoin and the broader crypto market has reached the strongest level since 2024. The fear-and-greed index is also moving closer to the extreme greed zone after this breakout. After bitcoin succeeded in breaking out of its previous range, market attention is shifting from whether it can break out to how far the advance can extend.