Bitcoin Eyes $90K As Bears Get Burned Again Amid $30B Open Interest Surge

More than $4 billion in long positions now sit within striking distance of liquidation near $77,000 — a figure that underscores just how much is riding on Bitcoin holding its current footing above $80,000.

Bears Keep Rebuilding, Keep Getting Burned

Data tracked by Bitcoin researcher Axel Adler Jr. shows that close to $8 billion in short positions have been forcibly closed since early February, with the largest single-day spike hitting $737 million on Feb. 13.

The liquidations did not come all at once. They arrived in three separate waves stretching from February through April, each one triggered as bearish traders rebuilt positions at higher price levels — only to get caught again as the price held firm.

Daily liquidation volumes had dropped to a range of $2 to $28 million before spiking back to $175 million on May 4. That jump came during an otherwise quiet week, pointing to fresh short exposure being built near $80,000.

Reports say the recurring pattern shows traders consistently betting against the price — and consistently being forced out.

Source: Axel Adler Jr.

Adler’s trend pulse model adds context. Bitcoin moved out of bear mode and into neutral territory in early April. Short-term momentum has turned positive, though a full bullish signal would require the 30-day simple moving average to cross above the 200-day.

According to the data, every major liquidation wave so far has occurred while the trend sat in this neutral zone — a transition phase that has repeatedly caught short sellers off guard.

Rising Open Interest Adds To The Pressure

Bitcoin’s open interest across all exchanges climbed 6% to nearly $30 billion as of early May, its highest reading since Jan. 31. That increase means the market is more sensitive to sudden price moves — up or down.

Funding rates remain near -0.0045, a sign that short-side pressure is still active while long positions are not yet crowded.