If Bitcoin closes above $80,000 on a daily candle, a short squeeze could send prices soaring towards $82,230 – a level that has been untested for seven months.
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That’s the scenario analysts are looking at after a massive selloff comes to a halt The climb of Bitcoin in a key resistance zone over the weekend.
Short sellers dominate the derivatives market
Data from Binance futures shows that almost 63% of open positions are currently short, meaning a large portion of traders are betting on lower prices.
According to analyst Frigg, this design works both ways. If buyers manage to push Bitcoin through $80,000 and hold, those short positions would be forced to close, increasing buying pressure and potentially accelerating a move toward the 200-day moving average of $82,230.
$BTC touched $80,526 this morning. it costs $79,900 on rn. a fuse is not a termination.
here’s what actually moved it.
Trump announced Project Freedom on Sunday evening that the US will guide stranded ships through the Strait of Hormuz from today.
15,000 troops, destroyers, more than 100 aircraft.… pic.twitter.com/p1SP4Ktilc
— Frigg 🌸 (@0xfrigg) May 4, 2026
That threshold has not been tested since October last year.
The derivatives picture lies on top of a broader accumulation trend. Reports indicate that whale wallets added 270,000 BTC through April, while Bitcoin on exchanges fell to a seven-year low.
Less Bitcoin on exchanges typically indicates that holders are moving coins to cold storage and not preparing to sell.
Bitcoin: Taker Sell Volume Reaches $1.67 Billion in One Hour, Highest in Two Weeks🤯 pic.twitter.com/2Otd8PIRg8
— Maartunn (@JA_Maartun) May 4, 2026
$1.67 billion in one hour
The sales spike itself came quickly. CryptoQuant analyst Maartunn flagged that taker volume sales reached $1.67 billion in one hour – the highest in two weeks – just as Bitcoin surpassed $80,000 for the first time since January 2026.
Taker sell volume follows market orders placed immediately at the best available price. When that number rises, it indicates urgent selling rather than patient, limit order activity.
Based on the data, analysts said $80,000 acted more as a distribution zone than a true breakout point, with sellers absorbing demand faster than buyers could maintain momentum.
Bitcoin retreated after the rejection, retreating from a high of $80,500 reached just hours earlier.
Macro events contributed to the run-up
The rally itself had a geopolitical trigger. US President Donald Trump announced what his administration called Project freedom On Sunday, the US military began escorting ships through the Strait of Hormuz using 15,000 troops, destroyers and more than 100 aircraft.
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The operation pushed down oil prices and increased sentiment on risky assets, including Bitcoin.
Frigg noted that the situation remains volatile. That same morning, a tanker was hit near Fujairah and Iran described the US operation as a disaster ceasefire offence. According to her, the brief improvement in market mood has not resolved the underlying tension.
Featured image from Vecteezy, chart from TradingView