Glassnode: Short Squeezes Drive Market Rally as BTC Faces Resistance at $81K-$86K

Glassnode reports that Bitcoin has rebounded 26% from its mid-August lows, supported by $2.23 billion in net inflows to U.S. spot Bitcoin ETFs. The rally was primarily fueled by a record short squeeze on August 19, which saw an 11% drop in open interest. Current data suggests the market is driven by short covering rather than new leveraged long positions. Significant supply resistance is identified between $81,000 and $86,000, with key support levels at $70,000 and the $62,000-$65,000 range.