Bitcoin rose above $80,000 during Friday’s trading session, triggering a new wave of short covering across the crypto market. The rally has been widely linked to the Federal Reserve’s latest interest rate decision: although the Fed raised rates by 25 basis points, the projected path for rates was less hawkish than markets had feared, prompting a rebound in risk assets.
Bitcoin intraday reached as high as $80,857.
Bitcoin is currently trading at $80,846, up 5.88% over the past 24 hours. The intraday high reached $80,857, with an opening price of approximately $76,355 and a daily low of $76,236. Previously, Bitcoin briefly dropped below $75,000 after a procedural vote in the U.S. Senate failed to advance the Clarity Act, briefly pressuring market sentiment.
The Federal Reserve announced a 25-basis-point rate hike this week, its first increase since 2023. However, the accompanying dot plot indicated a median policy rate of approximately 4.1% by the end of 2027, which the market interpreted as limited room for further hikes, easing concerns about continued tightening.
Total market short liquidations exceeded $445 million.
As prices surged rapidly, concentrated liquidations occurred in the derivatives market. Reports indicate that over $445 million in short positions across the entire crypto market have been liquidated, with over $230 million in Bitcoin-related short positions liquidated, accounting for more than half.
Short positions typically bet on price declines. When the price rapidly moves in the opposite direction, some leveraged traders may be forcibly liquidated due to insufficient margin. This passive covering further drives up the price, triggering a chain reaction of liquidations known as a "short squeeze."
- Bitcoin short liquidations: Over $230 million
- Total market short liquidations: Over $445 million
- Bitcoin 24-hour increase: 5.88%
The market is watching the $82,281 level.
The report notes that short-term resistance is near $82,281, with support levels at $75,569 and then $68,858 below. The article also cites several technical indicators indicating that the current trend strength remains strong, but after a rapid single-day surge, the market may first enter a consolidation phase.
Among these, the Average Directional Index (ADX) is currently at 40.6, above the common 25 threshold, indicating a strong trend. The report also noted that Bitcoin formed a "golden cross" last week, where the short-term moving average rose above the long-term moving average, typically viewed as a bullish signal.
However, the article also notes that volatility had been compressed for nearly two weeks. Such phases are often followed by a significant expansion in price movement. For the market, the short-term focus remains on whether Bitcoin can hold above $80,000 and whether short covering will continue to drive further upward momentum.