Breaking: Bitcoin hits $80k for the first time since May as rally continues

Bitcoin’s upward momentum carried it to the key psychological milestone of $80,000 on Tuesday, marking the first time the cryptocurrency has reached this level since May 4.

This extension of the rally comes amid growing expectations of improved market liquidity, which has acted as a rising tide for the entire digital asset space.

Over the past week, Bitcoin has surged by nearly 30%, while Ethereum has climbed more than 25% and XRP has gained approximately 30%.

The upward movement found additional fuel following an announcement from the U.S. Treasury detailing plans to double the scale of certain debt buyback operations. This move helped soothe liquidity anxieties and heightened investor appetite for risk-on assets.

As the rally maintains its pace, market participants are watching closely to see if Bitcoin can push onward to the $85,000 mark.

Treasury Buyback Expansion Fuels Ongoing Crypto Surge

The primary catalyst driving Bitcoin’s performance over the last seven days is the expansion of the U.S. Treasury’s debt buyback initiative.

By increasing the size of these buybacks, the Treasury helps support liquidity for longer-term government bonds, mitigating broader financial pressures and encouraging market participants to allocate capital toward riskier assets.

Major digital currencies reacted enthusiastically to the news, with Bitcoin, Ethereum, and XRP all posting double-digit percentage gains over the week.

The upward move was further accelerated by short liquidations, as bearish traders were forced to cover their positions, injecting additional buying momentum into the market.

In addition to Tuesday’s action, Bitcoin also touched the $80,000 mark on Friday after successfully breaking above its key exponential moving averages (EMAs).

Currently, the 200-day EMA is positioned at $71,545, while the 100-day and 50-day EMAs sit at $66,727 and $65,286, respectively.

Holding above these three critical technical markers points to a highly favorable short-term outlook and indicates a substantial strengthening of the market’s technical framework.

Furthermore, this breakout is backed by robust trading volumes, which lends credibility to the validity of the upward trajectory.

If Bitcoin can sustain its position above the 200-day EMA, it would bolster the bullish thesis and potentially turn that level into a reliable support zone.

Bitcoin Buyers Set Sights on $82,689 Resistance

The next significant hurdle for Bitcoin is situated near the psychological and horizontal resistance level of $82,689.

Buyers have successfully driven the price past $80,000, preventing immediate selling pressure from halting the upward momentum.

A clean break and a daily close above the $82,689 threshold would validate the bullish trend and potentially pave the way for further upside.

Conversely, failing to surpass this level could result in a phase of sideways consolidation as the market digests its recent run-up.

While momentum indicators remain positive, they are showing signs of being overextended. The Relative Strength Index (RSI) is currently hovering around 85, placing the asset deep within overbought territory.

Although an elevated RSI does not guarantee an immediate pullback, it suggests that the rally could be primed for a brief corrective pause.

Meanwhile, the Moving Average Convergence Divergence (MACD) remains firmly in positive territory, indicating that the broader upward momentum is still very much alive.

Together, these metrics point to continued control by buyers, even as the likelihood of short-term profit-taking grows.

Should selling pressure return, the initial line of defense is the 200-day EMA near $74,700. Staying above this indicator would keep the near-term bullish structure intact and set the stage for another run at the $83,000 level.

If a more pronounced correction unfolds, the market could test the 100-day EMA at $71,545 alongside the horizontal level at $66,727.

Below those points, further support is offered by the 50-day EMA at $65,286, with a deeper structural floor located at $62,300.

A prolonged drop below $62,300 would dampen the overall bullish narrative, whereas maintaining a position above the 200-day EMA would keep the $80,000 target firmly in play.