Bitcoin’s rally past $80,000 was initially driven by a record short squeeze on Aug. 19, when $1.74 billion in bearish positions were liquidated, according to Glassnode. Short positions represented about 85% of forced closures across major centralized exchanges, the largest single-day short-liquidation volume in Glassnode’s data since tracking began in 2019. The squeeze helped fuel a gain of more than $12,000 over four days, while another $1.22 billion in short positions were liquidated through Aug. 22. U.S. spot Bitcoin ETFs then recorded more than $2.2 billion in weekly net inflows, the strongest weekly intake of the year, and wallet cohorts from retail to institutions shifted into sustained net accumulation. Exchange, custodian and ETF-provider wallet clusters added more than 31,500 BTC. Glassnode said bitcoin now faces a supply test, with about 1.05 million BTC held by long-term holders concentrated between $83,000 and $86,000. Short-term holder cost bases near $70,000 and support between $62,000 and $65,000 remain key downside levels.