Bitfinex: $85,900 Resistance Could Cap Bitcoin Rally

Bitfinex reported $584 million in bitcoin long liquidations on Monday as the price tested the May Monthly Open at $76,318. The exchange’s analysts flagged the loss as the largest single-session wipeout for long positions since early February.

The sell-off coincided with a social media post from former President Donald Trump referencing potential military action against Iran, which lifted risk premia across global markets. Shipping through the Strait of Hormuz was effectively halted and Brent crude traded between $110 and $112 a barrel. Diplomatic engagement from Saudi Arabia, Qatar and the UAE helped temper further escalation. The U.S. 10-year Treasury yield rose to about 4.7%, a 16-month high, pressuring duration-sensitive assets.

Bitcoin opened the week at $77,385, slipped below $77,000 on Monday and hit a session low near $76,031 before recovering above $77,500 by Wednesday, retesting the weekly open at $77,385.

Total crypto futures liquidations reached roughly $657 million on Monday, with $584 million coming from long positions. Bitfinex analysts noted an earlier decline in open interest of roughly $1.5 billion late the previous week, followed by an additional drop on Monday. Exchange reserves fell to about 2.21 million BTC, a seven-year low, while long-term holder supply remained around 14.43 million BTC.

On-chain metrics identified immediate technical levels. Bitfinex tied short-term support to the 30-day accumulator cohort, with a cost basis near $76,500 that aligns with the May Monthly Open at $76,318. The report placed resistance near $85,900, where investors who bought between November 2024 and February 2025 reach breakeven and may reduce positions. The short-term holder realized price sits around $79,000; bitcoin trading below that level for several sessions represents overhead supply, the analysts noted.

Derivatives indicators showed the short-squeeze fuel from prior sessions had been exhausted and many recent long buyers were liquidated. Bitfinex wrote that any sustained directional move will likely require spot-market buying rather than futures positioning. Stablecoin market capitalization rose to roughly $322 billion, adding about $2 billion over the week as USDT and USDC saw material minting; the report said that liquidity exists but has not been deployed to push bitcoin decisively above $80,000.

Market structure showed limited rotation into altcoins. Bitcoin dominance hovered near 60% and the Altcoin Season Index remained below rotation thresholds. XRP and Solana attracted some inflows tied to active ETF cycles, and the token HYPE outperformed most large-cap altcoins after specific catalysts. Traditional assets moved unevenly: gold stayed below $4,550 while silver tracked industrial demand amid U.S.-China trade developments. Bitcoin moved in step with long-duration technology assets, falling alongside the Nasdaq as its six-week rally cooled.