Bitcoin surged to within a touching distance of $85,000 on Monday, extending a sharp recovery from last week’s lows near $75,000 as a fresh wave of short liquidations accelerated the move.
BTC had spent the weekend in the low-to-mid $81,000s before breaking through the $82,000-$83,000 area early Monday. Once those levels gave way, leveraged traders betting on a decline were forced to close positions, adding mechanically driven buying to an already strengthening market.
Liquidation data circulating during the move showed roughly $260 million in Bitcoin short positions wiped out in about an hour as Bitcoin approached $84,000. That followed another large liquidation wave on Friday, when $238 million in Bitcoin shorts were liquidated, according to CoinGlass.
Bitcoin closed the week above its 50-week moving average for the first time in 45 weeks, with Galaxy Research’s Alex Thorn describing the move as a “strong confirmation” that the bear market may have ended.
🟠 BTC CLOSES WEEK ABOVE 50-WEEK MOVING AVERAGE FOR FIRST TIME IN 45 WEEKS
regaining the 50w MA has historically served as strong confirmation that bear market lows are “in”
bitcoin is up 29% in 35 days pic.twitter.com/HzKVUrxMVz
— Alex Thorn (@intangiblecoins) September 21, 2026
The main break-out catalyst, according to CoinDesk, is the macro backdrop: Brent crude fell for a fourth consecutive session on Monday, dropping roughly 2% as markets weighed diplomatic efforts between Washington and Tehran aimed at easing tensions and restoring Middle East oil flows.
President Trump told Fox News he would “probably” be willing to meet Iranian President Masoud Pezeshkian during this week’s U.N. General Assembly, adding to expectations that a diplomatic breakthrough could reduce the risk of further disruption to crude supplies.
Lower energy prices also take some pressure off the inflation outlook, potentially giving the Federal Reserve more room to ease monetary policy after its recent rate hike. Investors are meanwhile looking ahead to a Trump-Xi meeting expected later this week.
At the same time, Nasdaq and S&P 500 futures moved higher, up 0.5% and 1% respectively, while Asian technology stocks rallied. The combination points to a modest improvement in broader risk appetite.
Bitcoin was changing hands around $84.700 at press time, up 5.3% over the day.