Bitcoin Price Cracks $84K as $188 Million in Crypto Shorts Get Wiped Out

Bitcoin’s Rally Leaves Short Sellers Scrambling

Bitcoin’s price traded near $84,376 on Bitstamp’s hourly chart on Oct. 21, 2026, after briefly approaching $84,739. The recovery followed a retreat toward $82,200 to $82,600, with BTC gaining roughly 1.5% to 2.7% over 24 hours.

Coinglass figures captured Wednesday morning at 11:20 a.m. showed $243.04 million in cryptocurrency liquidations over the previous 24 hours. Short positions accounted for $188.14 million, or 77.4% of the total, while longs represented just $54.89 million. In other words, more than three-quarters of the losses came from traders betting prices would fall.

Bitcoin alone accounted for $78.42 million in wipeouts, with nearly 94% of liquidations coming from shorts. Ethereum (ETH) followed with $47.99 million, while zcash (ZEC) recorded approximately $14.80 million in liquidated positions.

The largest individual liquidation was an $8.74 million ethereum short on Binance. Altogether, across every leveraged crypto market, 71,223 traders were liquidated, with the centralized exchange (CEX) Binance accounting for approximately 44% of the erased positions.

How Bitcoin’s Price Recovery Triggered a Liquidation Chain Reaction

The mechanics behind Wednesday’s shakeout are fairly simple. Traders betting against bitcoin often borrow funds to amplify their positions, expecting prices to decline. When bitcoin climbs instead, exchanges automatically close positions that no longer have sufficient collateral.

Those forced closures require traders to buy back the asset, adding buying pressure as prices rise. This creates a feedback loop in which higher prices trigger liquidations, and those liquidations can push prices even higher.

Wednesday’s numbers suggest bearish traders were caught flat-footed. Over a four-hour period, liquidations reached $144.68 million, while the one-hour tally stood at $68.12 million. The 12-hour figure climbed to $182.52 million, illustrating how quickly leveraged positions were dismantled. The resulting short squeeze helped propel bitcoin back above a price level that has repeatedly frustrated bullish traders throughout October.

Bitcoin Faces Another Battle Between $84,000 and $85,000

Despite the recovery, bitcoin hasn’t decisively escaped its October trading range. The $84,000 to $85,000 area has repeatedly attracted selling pressure, making Wednesday’s advance another test of familiar resistance rather than confirmation of a broader breakout. Recent inflows into U.S. spot bitcoin exchange-traded funds (ETFs) have provided additional support, while rising open interest suggests leveraged traders are rebuilding positions as prices recover.

A sustained move above $85,000 could open the door toward $86,500 to $86,700. Conversely, another rejection would leave $82,000 in focus, with $80,000 representing a deeper downside target. The Federal Reserve’s upcoming October policy decision adds another variable, particularly as elevated oil prices continue to complicate the inflation outlook. Presently, CME’s Fedwatch tool shows an 81% chance the Fed rate stays the same at the next meeting.

For now, bitcoin’s return above $84,000 has delivered an expensive lesson to traders betting on another decline. The bigger question is whether genuine buying demand can carry the rally forward once the forced buying runs its course.