Bitcoin rose about 6% over the last 24 hours, lifting its price back to the $81,300 range. This marks Bitcoin’s highest trading level in the past two weeks, reversing the downward trend that has dominated the market recently.
Aggressive buying forced traders betting on lower prices to close their positions. As a result, more than $445 million in short positions were liquidated across crypto exchanges. Bitcoin transactions accounted for the largest share of the total liquidations, with a value exceeding $230 million.
Three Shocks in a Week
Over the past week, the crypto market weathered three consecutive macroeconomic and political events. First, the failure of the CLARITY Act in the U.S. Senate pushed Bitcoin below $75,000. Second, the U.S. central bank (The Fed) raised interest rates by 25 basis points, marking its first rate hike since 2023. Pressure from the rate hike was cushioned by the release of the Fed’s dot plot, which projected only one more rate hike through late 2027 with a median value of 4.1%. Amid the mixed sentiment, the U.S. Securities and Exchange Commission (SEC) also opened an official pathway for trading tokenized stocks.
Technical Signals Reverse Course
Technical data shows that Bitcoin’s rebound accelerated after the price touched the True Market Mean around $76,660. From that point, the Supertrend indicator on the 4-hour chart flipped from bearish to bullish, establishing a new support level at $78,677. The upward move also pushed Bitcoin above the 20-day Bollinger Bands middle line at $78,346. The price continues to edge closer to the upper Bollinger band at $81,745. Buyer dominance is evident in the Aroon indicator, with Aroon Up at 85.71% in stark contrast to Aroon Down at 21.43%. At the same time, the daily Relative Strength Index (RSI) climbed to 64.48, moving away from its signal line average of 57.25 and creeping toward the overbought territory at 70.
Real Test at $83,000
The next resistance barrier lies in plain sight. Analysts map the $83,000 level as the primary test zone for Bitcoin’s current price trajectory. Whether Bitcoin can break through this level will determine its next direction, testing whether the uptrend is sustainable or merely a reaction to forced short liquidations. Reported by crypto.news.
Also read: What Is Bitcoin Halving?
Previously: Bitcoin Bounces Back Above $80,000 After Wiping Out Short Positions - Eyes $82,000 Daily Close
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
