Bitcoin Surges Toward $80,000 as Derivatives Market Signals Structural Rebuild
A short squeeze, institutional inflows, and improving futures metrics are combining to push Bitcoin to its highest levels in months, but the
Quick overview
- Bitcoin is currently trading around $77,800, marking a 2.7% increase in the last 24 hours, with a significant rise from a recent low of $74,850.
- A major short squeeze has contributed to this price increase, resulting in over $152 million in liquidated Bitcoin positions, primarily from bearish short sellers.
- The Bitcoin futures market shows positive signs, with a 14.5% rise in open interest over the past 30 days, indicating new money and leverage entering the market.
- Bitcoin is approaching the critical $80,000 level, with analysts suggesting that a daily close above this mark could lead to further upward momentum.
A short squeeze, institutional inflows, and improving futures metrics are combining to push Bitcoin BTC/USD to its highest levels in months, but the $80,000 barrier looms large.
Bitcoin is trading around $77,800 on Thursday, April 23, 2026. This is a rise of about 2.7% in the last 24 hours, which is more than the 1.8% gain in the overall crypto market. The world’s biggest cryptocurrency by market cap, which is worth over $1.55 trillion, has made a big comeback from a recent low of $74,850. It briefly hit $79,490 before falling back into consolidation territory.
A Short Squeeze Lit the Fuse
A big short squeeze was the main reason for the most recent rise. In just 24 hours, more than $152 million worth of Bitcoin positions were sold off. Of that, $141.49 million were bearish short positions. The situation generated a feedback cycle that kept going: as prices went up, more short sellers had to terminate their positions, which made prices go up even more, which led to even more liquidations.
Funding rates in the perpetual futures market have stayed negative throughout the rise, which means that a lot of traders are still betting against Bitcoin and paying to keep those positions. If prices keep going up, that structural overhang might cause more short squeezes in the market.
BTC Futures Market Shows More Than Just a Squeeze
Axel Adler Jr., an on-chain expert, says that something more lasting may be happening in Bitcoin’s futures market, in addition to the mechanics of the squeeze. In a brief on Wednesday morning, Adler pointed out that the 30-day moving average of his Bitcoin Positioning Index has risen to 4.5, its highest level in four months. At the same time, Bitcoin futures open interest has risen 14.5% over the past 30 days, one of the strongest readings in the past 120 days.
Adler’s distinction is essential. When open interest goes down and positioning goes up, it usually means that old bearish bets are being wiped out. When both go up at the same time, it means that new money and new leverage are coming into the market. Adler stated, “What we are seeing now is exactly the second scenario.” He said that 23 of the last 30 days ended with positive open interest, which he called “a sustained upward leverage rebuild” instead of just one surge.
Macro Tailwinds and Institutional Demand Support Bitcoin
A better macro environment has also helped the surge. A longer U.S.-Iran ceasefire led to less geopolitical tension, which helped risk assets in general. Bitcoin’s correlation with the S&P 500 is currently at 52.5%, which shows that they are both moving in the same direction because of macroeconomic factors. At the same time, U.S. spot Bitcoin ETFs saw their inflows grow for six days in a row, bringing in $11.84 million on April 21 alone. This shows that institutional interest is still strong.
When Will Bitcoin Cross $80,000?
Bitcoin is currently trading close below the $80,000 level, which is important to many people. This level is now the market’s main focus. Order book data shows a strong sell wall at $80,000, and analysts say that a clean daily closure above that level would be needed to reach the next Fibonacci extension near $82,320.
On the downside, there is significant support at $77,150, and a stronger floor near $75,700 backed by a $217 million bid wall. If it breaks below that level, it might go back down to $72,000.
For now, the technical picture seems cautiously positive. Bitcoin is above both the 100-hour simple moving average and the 50% Fibonacci retracement of its recent swing, and the Relative Strength Index is above 50. In the next 48 hours, if the market can turn its derivatives-driven momentum into a clear break above $80,000, it might set the tone for Bitcoin’s next big rise.
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