Bitcoin eyes $80k after weekly rally pushes BTC above key moving averages

Key takeaways

• This week, Bitcoin has surged by nearly 20%, Ethereum has jumped over 25%, and XRP has climbed almost 30%.
• Expectations of improved market liquidity, driven by expanded U.S. Treasury debt buybacks, have fueled appetite for risk-on assets.
• After surging past its 50-day, 100-day, and 200-day exponential moving averages (EMAs), Bitcoin is trading near $76,800.

On Friday, Bitcoin, Ethereum, and XRP continued their upward trajectories as optimistic liquidity forecasts provided a lift to the broader digital asset market.

Over the course of the week, Bitcoin notched a gain of nearly 20%, Ethereum climbed by more than 25%, and XRP surged by nearly 30%.

The upward momentum accelerated following an announcement from the U.S. Treasury that it intends to double the scale of specific debt buyback programs.

This policy move helped alleviate concerns surrounding market liquidity, bolstering investor appetite for risk-sensitive assets.

As these three major cryptocurrencies post solid gains, market participants are closely monitoring whether Bitcoin can hit $80,000, Ethereum can break back above $2,500, and XRP can push toward the $1.50 mark.

Treasury buyback expansion strengthens crypto rally

Overall sentiment across financial markets received a boost from the U.S. Treasury’s decision to scale up its debt buyback initiative.

By expanding these buybacks, the Treasury can bolster liquidity for longer-term government bonds, lowering financial strain and prompting market participants to allocate capital toward riskier investments.

The cryptocurrency market reacted enthusiastically to the news, leading to double-digit weekly percentage gains for Bitcoin, Ethereum, and XRP.

The upward price action was further intensified by a wave of short liquidations, forcing sellers to buy back their positions and injecting additional buy-side pressure into the market.

By Friday, Bitcoin was exchanging hands around $76,800, having cleanly broken above its key exponential moving averages.

Specifically, the 200-day EMA is positioned at $71,545, the 100-day EMA sits at $66,727, and the 50-day EMA resides at $65,286.

With Bitcoin trading comfortably above these three technical benchmarks, the short-term outlook appears highly favorable, indicating a significant strengthening of the asset’s overall market structure.

High trading volume accompanied the breakout, validating the strength of the recent price surge.

If the price remains consistently above the 200-day EMA, it would bolster the bullish thesis and potentially turn that level into a reliable support zone.

BTC bulls target the $80,000 resistance

The next major hurdle for Bitcoin is the psychological and horizontal resistance level situated at $80,000.

An advance from $74,700 to $80,000 would mark an additional climb of roughly 7.1%.

Even so, the $80,000 mark could trigger profit-taking and invite new selling interest, particularly given how quickly Bitcoin has risen this week.

A convincing breakout and daily close above this key resistance would solidify the bullish trend, potentially paving the way for further upside.

Conversely, if Bitcoin fails to surpass $80,000, the market could enter a consolidation phase while investors process the recent upward moves.

While Bitcoin’s momentum metrics point upward, they are looking increasingly overextended. The Relative Strength Index (RSI) is currently hovering around 83, placing the asset deep in overbought territory. Although a high RSI does not mean an immediate pullback is inevitable, it does suggest that the rally might need a temporary breather.

Meanwhile, the Moving Average Convergence Divergence (MACD) remains firmly positive, indicating that buyers still have the upper hand.

Combined, these technical indicators show that buyers are still dominating the market, though the likelihood of short-term profit-taking has risen.

Should a pullback occur, the initial line of defense is the 200-day EMA near $71,545. Staying above this level would keep the bullish structure intact, potentially serving as a launchpad for another run at $80,000.

A more pronounced drop could see Bitcoin test the 100-day EMA at $66,727 alongside the horizontal support level near $66,500.

Further down, the 50-day EMA at $65,286 provides additional support, with a more significant structural floor resting at $62,300.

A prolonged drop below $62,300 would damage the long-term bullish narrative, whereas holding ground above the 200-day EMA keeps the path toward $80,000 open.