Bitcoin has recovered above $80,000 for the first time since the October 29 Binance hack, marking a significant improvement in market sentiment. The rebound on Wednesday, November 4, triggered a major short squeeze that eliminated approximately $468.5 million in bearish positions across cryptocurrency futures markets.
The rally gathered pace after U.S. equity markets opened, forcing traders with leveraged short positions to buy back their holdings. Bitcoin advanced to approximately $80,550, gaining 2.7% over 24 hours. Ethereum performed even better, rising 4.4% to reach $2,427.
BTC’s recovery unfolded through two sharp upward moves. Bitcoin initially traded at $78,321 at 14:30 UTC, coinciding with the opening of the New York trading session. It climbed to $79,559 within 15 minutes before extending the rally to $81,196 by 15:15 UTC. Earlier, BTC had fallen to $75,736, resulting in an intraday price movement of more than 7%.
The majority of liquidated positions belonged to traders expecting Bitcoin to decline further. However, rallies supported by short liquidations can lose strength once forced buying activity subsides, making continued demand essential for sustaining the recovery.
Bitcoin Short Squeeze Wipes Out $468.5 Million
CoinGlass data shows that total cryptocurrency futures liquidations reached $715.6 million over a 24-hour period. Bearish positions accounted for 65.5% of the total, representing approximately $468.5 million. Nearly 99,879 traders were forced out of their positions.
Bitcoin experienced the largest liquidation volume, with $267.1 million in positions closed. Shorts represented 93.4% of BTC’s total liquidations, demonstrating the extent to which bearish traders were caught off guard by the sudden recovery.
Ethereum followed with $197.5 million in liquidations, including 58.1% from short positions. Binance accounted for 39.3% of all liquidations recorded across the cryptocurrency market.
The largest individual liquidation involved a $38 million Ethereum long position on HTX, which was closed at $2,429.33, near ETH’s current market price.
Bitcoin futures activity also indicates that traders were reducing their exposure during the rally. Open interest in BTC futures on OKX reached $3.88 billion before declining to $3.74 billion by midnight UTC. The reduction suggests that existing positions were being closed rather than replaced with substantial new bets.
Despite Bitcoin’s price recovery, market positioning remains cautious. The OKX ratio comparing accounts holding long BTC positions with those holding shorts dropped from 1.84 at 11:00 UTC on Wednesday to 1.52 by Thursday morning. This shift indicates that bearish traders have gained relative ground despite the upward price movement.
Bitcoin Price Analysis: Can BTC Break Its Pre-Hack High?
Bitcoin is currently trading around two closely watched technical indicators: its 20-day exponential moving average (EMA) at $80,006 and its 50-day EMA at $80,166. This convergence makes the $80,000 region a crucial level for determining whether the recovery can continue.
The next significant resistance stands near $81,971, which was Bitcoin’s trading level before the October 29 Binance hack triggered widespread market selling. A sustained move above this price would erase the losses associated with the incident.
Options market indicators suggest that traders are not anticipating a major increase in volatility. Deribit’s DVOL index, which tracks expected Bitcoin volatility over the coming 30 days, declined to 36.9 from 38 on Wednesday.
Going forward, the key question is whether spot market investors will continue buying Bitcoin after the short squeeze loses momentum. Stronger spot demand could help BTC defend the $80,000 support zone and challenge its pre-hack trading level.
However, if fresh buying interest remains limited, the rebound could lose momentum. In that scenario, Wednesday’s price increase may prove to be a temporary reaction to forced short liquidations rather than the beginning of a sustained Bitcoin recovery.
