Glassnode: Short squeeze cuts BTC futures open interest by 11%

Glassnode data show Bitcoin has rebounded about 26% from its mid-August low. Over the same period, U.S. spot Bitcoin ETFs posted net inflows of $2.23 billion, the strongest seven-day intake of the year, with no single-day outflows. Exchange-held BTC balances continued to fall, while accumulation was seen across all wallet-size cohorts. Glassnode said near-term supply is clustered in the $81,000–$86,000 area, overlapping with cost-basis hot spots, relisted sell orders, a market-maker gamma flip zone, and levels associated with short liquidations. The firm attributed the move to a wave of liquidations that peaked on August 19. Shorts accounted for 85% of liquidations during the window, marking the largest single-day short liquidation since Glassnode began tracking in 2019. BTC-denominated futures open interest fell 11%, while funding rates drifted back toward neutral, pointing to short covering rather than fresh long leverage as the main driver. Options pricing indicates the advance may extend into late September. Glassnode flagged resistance near $83,300, with support around the $70,000 cost-basis zone and a secondary band at $62,000–$65,000.