Glassnode: Short Squeeze Cuts Open Interest 11%, BTC Resistance at $81K-$86K

The 11% drop in open interest following short liquidations signals a forced deleveraging event rather than organic demand, which historically can leave the market vulnerable to volatility whipsaws. The $81K-$86K band now acts as a supply zone where trapped shorts previously entered; if price reclaims it, momentum could accelerate, but failure would likely confirm the squeeze has exhausted its fuel. The key watch is whether new longs step in to replace the cleared positions, as sustained upside typically requires fresh leverage rather than just the absence of shorts.