Bitcoin Reclaims $80,000 for First Time Since May as Liquidity Hopes Fuel Crypto Rally

Bitcoin surged past the key $80,000 threshold on Tuesday, returning to that level for the first time since May 4 as easing liquidity fears lifted risk appetite across digital assets. Over the past week, Bitcoin is up nearly 30%. Ethereum has climbed more than 25%, and XRP has gained almost 30%, reflecting a broad-based crypto advance. Momentum picked up after the U.S. Treasury said it plans to double the size of certain debt buyback operations. The move helped calm concerns about market liquidity and boosted demand for risk-sensitive assets. Investors are now watching whether Bitcoin can extend gains toward $85,000. Treasury buyback expansion seen as key driver Market participants point to the Treasury's expanded buyback program as a central catalyst behind the past seven days' rally. Larger buybacks can improve liquidity in longer-dated Treasury securities, ease financial stress, and encourage greater exposure to riskier assets. Major tokens including Bitcoin, Ethereum, and XRP reacted sharply, posting double-digit weekly gains. The rally was amplified by short liquidations, as bearish traders were forced to close positions, adding additional buying pressure. From a technical perspective, Bitcoin's breakout was reinforced by a decisive move above major exponential moving averages. The 200-day EMA is at $71,545, with the 100-day and 50-day EMAs at $66,727 and $65,286, respectively. Holding above all three supports a bullish near-term setup and suggests the broader technical structure has improved. Market data also indicates the move has been supported by strong trading volume, lending credibility to the breakout. A sustained trade above the 200-day EMA would strengthen the case for further gains and could turn that level into a new support zone. Next resistance: $82,689 Bitcoin's next notable hurdle sits around $82,689, a level described as both psychological and horizontal resistance. Bulls have pushed price above $80,000, reducing the risk that immediate selling pressure derails the advance. A clean break and daily close above $82,689 would reinforce the bullish outlook and could open the door to higher targets. If Bitcoin fails to clear that barrier, a consolidation phase may follow as traders digest recent gains. Momentum signals remain positive but stretched. The relative strength index is hovering near 85, placing Bitcoin deep in overbought territory. That does not necessarily signal an imminent reversal, but it suggests the rally may be vulnerable to a corrective pause. The MACD remains firmly positive, indicating upward momentum is still intact. Together, the indicators imply bulls remain in control, though the risk of short-term profit-taking has increased. On the downside, initial support is seen near the 200-day EMA around $74,700. Holding above that level would preserve the immediate bullish structure and could set up another attempt toward $83,000. A larger pullback could bring the 100-day EMA at $71,545 and the nearby horizontal level at $66,727 into focus. Below that, the 50-day EMA at $65,286 provides another layer of support, followed by the structural floor at $62,300. A sustained drop below $62,300 would undermine the broader bullish outlook, while continued trading above the 200-day EMA would keep the $80,000 area within reach. Source: CoinJournal