Bitcoin price hits $80K as 24-hour crypto short liquidations pass $220M
As BTC tops $80,000 for the first time since May, price analysis warns that the market still needs to sustain higher levels to challenge the bear-market thesis.
Bitcoin's price reached $80,000 for the first time since May, signaling a potential challenge to bear-market theory. The cryptocurrency climbed another 3% on Monday as investment interest grew following last week's rally. According to TradingView data, Bitcoin/USD surpassed $80,000 for the first time since May 15 before experiencing a slight pullback following the European market close.
This upward movement boosted crypto short liquidations, with $220 million in liquidations occurring over a 24-hour period, as reported by CoinGlass.
A supportive band of bid liquidity centered around $76,700 could provide a safety net if Bitcoin were to experience a downward reversal. Over the past month, Bitcoin has surged 25%, marking its best August performance since 2017 and deviating from bear-market patterns. Initial concerns among traders regarding a possible bearish history repeating itself emerged, with fears that downward pressure might re-emerge from September, leading to a final capitulation at new macro lows.
Cointelegraph previously highlighted apprehensions in some circles that history could repeat itself, with a potential descent starting in September. However, bullish sentiment persists as Bitcoin has closed at weekly highs, and analysts warn that a "Bear Market Relief Rally" could be in progress. Rekt Capital, a trader and analyst, cautioned that sustained strength must be demonstrated before wavering prices could bring back bearish trends.
In particular, Rekt Capital emphasized the importance of Bitcoin closing above its 50-week exponential moving average, currently at $77,251. During the 2022 bear market, Bitcoin achieved two weekly closes above this trend line before eventually dropping to cycle lows. Some observers, such as Magazine from Bitget, are not convinced by the recent rally and are waiting for Bitcoin to reach the $50,000 mark before considering the uptrend as valid.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
