Bitcoin jumped about 6% in 24 hours to near $81,300 as a short squeeze forced traders out of leveraged short positions. The rally now faces a key test at $83,000, the level analysts say must break to confirm a market bottom.
Bitcoin traded at approximately $81,330, after touching an intraday high near $81,741, extending a sharp recovery from the $75,000–$76,000 area earlier in the week. The move erased losses tied to tighter monetary policy and uncertainty over U.S. crypto legislation.
The rebound accelerated after Bitcoin reclaimed its True Market Mean near $76,660, forcing traders holding leveraged short positions to buy back Bitcoin as prices moved against them. That short squeeze contributed to more than $250 million in short liquidations over the past day.
Forced buying then helped Bitcoin clear resistance at $78,000 and $80,000. Bitcoin-related U.S. stocks also rallied, with Coinbase, Strategy and Robinhood recording strong gains during Friday trading.
Technicals turn bullish above $78,600
Bitcoin's 4-hour Supertrend indicator flipped from bearish to bullish, with support now near $78,677. The Aroon indicator points to stronger upward momentum, with Aroon Up at 85.71% against an Aroon Down reading of 21.43%, though Aroon Up has started to turn lower from 100%.
On the daily chart, Bitcoin moved above the Bollinger Bands' 20-day middle line at $78,346 and is approaching the upper band at $81,745. Daily RSI rose to 64.48 from a signal average of 57.25, showing strong momentum without yet reaching overbought territory.
Liquidation heatmap flags $82,000 resistance
CoinGlass' three-day liquidation heatmap shows a dense band of leveraged positions between $81,800 and $82,000, directly above the current price. A move through $82,000 would expose additional liquidity near $82,500–$83,000, while a deeper decline would bring the $75,000–$76,000 zone back into focus.
Analysts watch $83,000 for bottom confirmation
Crypto analyst Ted Pillows said Bitcoin appeared set to close above its 50-week moving average, identifying $83,000 as the level BTC must clear to confirm that a market bottom has formed. According to Ted Pillows: "Bitcoin just needs to break above $83,000 to confirm that the bottom is in."
A sustained move above that level would also break the upper part of the range containing Bitcoin since its August rally, placing $85,000 in view.
The rally followed a difficult week for U.S. crypto investors: the Senate's rejection of the CLARITY Act delayed efforts to establish a federal digital-asset market structure, and spot Bitcoin ETFs recorded nearly $746 million in net outflows during the midweek selloff.
The Federal Reserve also raised interest rates by 25 basis points, while the Bank of Japan lifted its benchmark rate to 1.25%.
Source: crypto.news
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