Bitcoin Reclaims $81,000 as Short Sellers Get Crushed
Bitcoin surged back above the $81,000 mark on May 14, triggering a sharp wave of short liquidations and reigniting bullish momentum across the broader crypto market.
Summary:
- Bitcoin reclaimed the $81,000 level after a sharp rebound.
- More than $38 million in BTC shorts were liquidated.
- Total crypto liquidations approached $296 million in 24 hours.
More than $38 million in Bitcoin short positions were wiped out during the rebound as traders scrambled to cover bearish bets following the latest market dip. The move helped push total crypto market capitalization back toward $2.7 trillion, while sentiment indicators stabilized after several days of volatility.
Market Momentum Returns
The rally marked a notable reversal after earlier weakness tied to ETF outflows and macro uncertainty pressured digital assets at the start of the week.
According to CoinMarketCap data, Bitcoin climbed roughly 1.6% over the past 24 hours to trade near $80,900, while Ethereum added more than 1% to hover around $2,280. Major altcoins also recovered, with XRP, Solana and Dogecoin all posting gains during the session.
The rebound pushed the Crypto Fear & Greed Index back to 49, reflecting a shift away from panic conditions and toward a more neutral market structure.
Short Liquidations Accelerate the Move
The recovery rapidly turned into a squeeze against bearish traders.
Data from Coinglass showed that nearly $296 million worth of leveraged crypto positions were liquidated over the past 24 hours, with short sellers accounting for a substantial portion of the losses.
Bitcoin alone represented more than $102 million in liquidations, while Ethereum contributed another $66 million. Over shorter timeframes, the imbalance became even more pronounced. During the past hour, roughly $40.7 million in short positions were erased compared with just $1.4 million in long liquidations.
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Analysts noted that once Bitcoin reclaimed the psychological $80,000 threshold, algorithmic buying and forced short covering amplified upside momentum.
Altcoins Join the Recovery
The rebound extended well beyond Bitcoin.
Hyperliquid traded above $42 following continued momentum tied to institutional adoption and ETF-related optimism. BNB climbed more than 5% over the past week, while XRP and Solana also posted strong relative performance.
Despite the recovery, the Altcoin Season Index remained at 45 out of 100, indicating that Bitcoin still controls the broader market narrative even as capital slowly rotates into higher-risk assets.
Market participants also continued monitoring Bitcoin ETF flows after recent heavy outflows raised concerns about weakening institutional demand earlier in the week.
Traders Watch Key Resistance Levels
The focus now shifts toward whether Bitcoin can maintain momentum above the $81,000 level and attempt another breakout toward recent highs.
Technical traders noted that reclaiming the area erased much of the bearish structure created during the latest pullback.
However, elevated liquidation activity and still-fragile sentiment suggest volatility could remain high over the coming sessions.
For now, the market appears to be stabilizing after a sharp round of deleveraging, with buyers regaining short-term control as institutional and retail traders reposition across the crypto complex.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Zdravkov
Reporter at CoinsPress
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
