Bitcoin Surges Above $80,000 After Short Liquidations

On November 5, 2026, Bitcoin traded above $80,000 after dropping to around $75,600 during the U.S. midterm elections. The recovery coincided with the return of inflows into spot BTC ETFs and mass short position closures. However, on-chain indicators do not yet confirm the end of the correction.

ETF inflows resumed after three days of outflows

According to Farside Investors, on November 4, U.S. spot Bitcoin funds received $74.6 million in net inflows. Prior to this, a total of $1.16 billion was withdrawn over three trading sessions: $643.2 million on October 30, $398.6 million on November 2, and $115.6 million on November 3.

The results varied among individual funds. Fidelity FBTC received $236.7 million, Bitwise BITB – $15.2 million, and ARK Invest ARKB – $19.9 million. At the same time, $201.2 million was withdrawn from BlackRock IBIT. Therefore, one positive day does not yet indicate a sustainable recovery in ETF demand.

Liquidations accelerated BTC growth

According to data provided by CryptoQuant analysts, during a sharp movement within one hour, cryptocurrency positions worth approximately $466 million were liquidated, including about $378 million in short positions. These are liquidations in the cryptocurrency market as a whole, not just Bitcoin.

As the price rises, exchanges forcibly close some leveraged shorts. Such operations can accelerate upward movement but do not in themselves prove the inflow of long-term capital.

In traditional markets, on November 4, the S&P 500 index rose by 1.6% following the U.S. midterm elections. Democrats gained control of both chambers of Congress, but the new powers will take effect in January 2027. The connection between the election results and the BTC rate remains indirect.

Key levels to determine the continuation of the rebound

Analysts place the nearest technical resistance in the range of $81,300–$82,000. Holding above this zone could strengthen the recovery, while losing $80,000 would again draw attention to the levels of $77,700 and $75,700, which Glassnode associates with market valuation and the cost basis of short-term holders.

CryptoQuant analyst CryptoZeno notes that the 30-day average Bitcoin Cycle Extremes Index has dropped to 15.8%. Its Cycle Extreme Oscillator remains below 1.0. These indicators suggest a cooling market but do not confirm the end of the correction.

For assessing the sustainability of growth, further ETF flows, spot demand, and BTC's ability to hold above recovered levels without a new wave of forced position closures are important.