Can Bitcoin hold US$80,000 after a US$386M short squeeze and US$1.16B in ETF outflows?
I think this crypto advance deserves attention, but not full conviction. Bitcoin rose 4.77 per cent to US$80,721.27 in 24 hours and led a broad move that lifted the total crypto market 4.73 per cent to US$2.69T. The move showed an 87 per cent correlation with the S&P 500 and an 86 per cent correlation […] The post Can Bitcoin hold US$80,000 after a US$386M short squeeze and US$1.16B in ETF…
Bitcoin rose 4.77% to $80,721.27 in 24 hours, leading a broad market move that lifted the total crypto market 4.73% to $2.69T. This move correlated 87% with the S&P 500 and 86% with Gold, suggesting the initial engine came from outside crypto. The SPY ETF rose 1.47% during this period, indicating a macro recovery rather than a crypto-specific breakout.
Bitcoin's price drop to $75,700 yesterday was driven by fears of a Democratic sweep delaying crypto-friendly legislation. However, once political uncertainty faded, markets interpreted the outcome as a return to policy stability, fueling a rebound from an oversold condition. Weak demand due to US spot Bitcoin ETFs seeing three consecutive days of outflows raises caution.
Three-quarters of short positions closed within 4 hours, with total crypto liquidations nearing $1 billion in 24 hours. This forced buying accelerated Bitcoin's climb back above $80,000. Now, Bitcoin faces a technical test, with immediate resistance between $81,300 and $82,000 and support at $78,000 to $79,000. Holding above $80,000 could propel Bitcoin to $81,300 to $82,000, while failing to reclaim this level might lead to a retest of support near $77,000.
Heightened regulatory scrutiny of Trump-connected crypto businesses adds another layer to the market's potential trajectory.
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