Glassnode says Bitcoin is now facing a major supply zone between $81,000 and $86,000, where cost-basis, dealer, liquidation, and long-term holder levels are clustered. For traders, that kind of overlap matters because it can concentrate selling pressure and slow momentum as price approaches areas where previous buyers may be inclined to exit.

U.S. spot Bitcoin ETFs recorded $2.23 billion in inflows during the squeeze, marking the strongest seven-day intake of 2026.

Short-term holders sent more than 60,000 BTC to exchanges in profit on Aug. 20, but selling later slowed to 16,300 BTC.

Bitcoin’s rally now faces a supply zone between $81,000 and $86,000, according to Glassnode. The firm linked the 26% rebound to record short liquidations and ETF inflows. Analyst Darkfost separately reported that short-term holders sent more than 60,000 BTC to exchanges in profit on Aug. 20.

Short-Term Holders Slow Selling

Darkfost said the Aug. 20 transfer was the strongest short-term holder movement in recent months. However, profit-taking later eased. About 16,300 BTC moved to exchanges in profit over 24 hours, according to Darkfost. He said declining sell pressure remains important for Bitcoin to hold its levels.

Glassnode said Aug. 19 marked its largest short liquidation event since 2019. Short positions accounted for 85% of liquidations. The rally cleared 86% of modeled liquidation clusters along its path.

Futures open interest fell 11% during the squeeze, while perpetual funding remained near neutral. Glassnode said this suggested the rally did not follow a fresh wave of leveraged long positions, which is relevant because it points to a move driven more by position unwinding and spot demand than by a crowded futures build-up.

ETF Inflows Support the Rally

U.S. spot Bitcoin ETFs recorded $2.23 billion in creations during the squeeze window. That was the strongest seven-day intake of 2026, with no outflow day. All six wallet-size groups also accumulated.

The 30-day Accumulation Trend Score stayed above 0.5 from Aug. 5. Meanwhile, entities holding 1,000 to 10,000 BTC reduced their holdings by 50,500 BTC since June 30. Larger entities absorbed 59,100 BTC over the same period.

Bitcoin gained 25% during the squeeze window, while the S&P 500 fell 1.7%. Correlation between the two markets moved toward zero.

$81K-$86K Zone Holds Key Levels

Glassnode identified several structures within the $81,000 to $86,000 supply area. These include cost-basis, dealer, liquidation, and long-term holder levels. The cost-basis shelf starts near $80,800.

Dealer gamma turns negative around $82,300, while short liquidation levels extend toward $86,000. Michael van de Poppe said Bitcoin remains indecisive around these levels. He identified $79,500 as an important level, followed by $82,700 and $90,000.

Van de Poppe also said minor Bitcoin declines can produce larger losses in altcoins. However, he described those dips as opportunities before another upward move.

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