Bitcoin price today: BTC USD nears $88,000 as short sellers pile up - will the crypto hit $93,000 next?

Bitcoin has already shown that strong buying can push it sharply higher. The harder part has been keeping the gains.

Bitcoin Price Today

The cryptocurrency is now back near the level where its September rally stalled. Bitcoin was trading at $86,093 on October 5, up 1% over the previous 24 hours and 4% over the past week. It was still about 1.5% below its September 21 high of $87,397.

This time, however, there is another factor in play. A cluster of leveraged short positions sits around $88,000, with a larger group near $90,000.

September Brought Strong ETF Buying

Bitcoin's September move was accompanied by significant activity in spot Bitcoin ETFs.

On September 21, Bitcoin climbed from $80,837 to $87,397 as roughly $750 million in short positions were liquidated. Spot Bitcoin ETFs also recorded a $715 million inflow that day.

For the month as a whole, U.S. spot Bitcoin ETFs attracted about $2.65 billion, according to the Crypto.news report.

Yet the strong inflows did not prevent the rally from fading. Bitcoin fell below $85,000 by September 25.

That leaves the latest move facing a familiar question: can Bitcoin turn the renewed buying into a sustained advance?

Bitcoin Is Back Near $87,000

The cryptocurrency has returned to the area it reached in September.

Bitcoin was up 8% over the past month as of October 5, according to 24/7 Wall St. But another attempt to reach $87,000 on October 3 failed, with about $478 million in leveraged positions liquidated across the crypto market.

The September high of $87,397 is therefore still directly in focus.

Crypto.news reported that Bitcoin needs to reclaim about $87,400 on a daily or weekly closing basis as part of a potential breakout.

$88,000 Could Put Short Sellers Under Pressure

Just above that level sits another potential source of momentum.

Leveraged short positions are clustered around $88,000. If Bitcoin moves higher and those positions are liquidated, traders would have to buy Bitcoin to close them.

That forced buying can add upward pressure and potentially trigger further liquidations.

The Crypto Rally Needs More Than a Quick Spike

The recent price action shows why a short-term jump may not be enough. 24/7 Wall St pointed to Bitcoin remaining above $88,000 for several consecutive days, along with solid spot Bitcoin ETF inflows, as a sign of renewed demand.

That would give the latest move a different footing from a rally driven mainly by short liquidations.

The October 3 move is another reminder of the volatility surrounding leveraged positions, with roughly $478 million liquidated across the crypto market.

Why $93,000 Is Now in the Conversation

The potential upside could extend further if market conditions become more supportive.

As per Crypto News, Bitcoin could reach between $90,000 and $93,000 if Treasury yields ease and inflation data supports weaker employment. The report also said October Federal Reserve rate-hike odds had dropped to roughly 23% from 64% a week earlier.

Those conditions, along with continued spot Bitcoin ETF inflows, are part of the backdrop behind the potential move toward $90,000-$93,000.

BTC USD Has to Prove the Rally Can Last

Bitcoin is once again approaching its September high, but the previous attempt shows that getting there is only part of the challenge.

The immediate levels are, $87,397 is the September high, $88,000 is where a cluster of short positions sits, and another larger cluster is around $90,000.

If Bitcoin can move through those levels and hold the gains while ETF inflows remain solid, the latest recovery could look different from the rally that faded in September.