Bitcoin pushed above the $80,000 mark today for the first time this year before pulling back to a critical support zone.
Meanwhile, at press time, Bitcoin is still above $80,000, gathering momentum to push higher. According to analysts, market structure and derivatives data now shape what comes next.
Key Points
- Bitcoin briefly broke above $80K before pulling back to the key $78.4K support level.
- Over 118,000 traders were liquidated, with losses totaling $508.57 million in one day.
- Analysts say holding $78.4K is crucial, as it forms the base for any continued upside.
- If support holds, Bitcoin could target $85K; if not, the price may revisit the $75K zone.
Veteran Trader on Bitcoin $80K Breakout
In a tweet today, analyst Sykodelic, a trader with over seven years of experience, noted that Bitcoin returned to the $78,400 level shortly after the $80K run. He describes the $78,400 region as a major higher-timeframe (HTF) structure point.
According to him, this level represents the weekly candle body low of a bullish structure, and importantly, Bitcoin has reclaimed it for two consecutive weeks. That reclaim is now the foundation for any continuation higher.
Bitcoin Liquidations Shake the Market After $80K Push
The move to $80,000 triggered a wave of new long positions, many of which were quickly wiped out during the pullback. Specifically, over the past day, 118,800 traders were liquidated, losing $508.57 million, according to CoinGlass data.
This move follows a sharp drop in open interest, signaling forced liquidations. Sykodelic says this kind of move typically points to one of two scenarios.
Either the drop was a deliberate liquidity sweep to flush out late long traders before continuing upward, or the initial breakout itself was a trap to liquidate short sellers before a deeper move down.
This uncertainty leaves Bitcoin at a decision point.
What Needs to Happen Next
For the bullish trend to continue, the analyst highlights a few key signals.
First, Bitcoin must hold firmly above $78,400. Losing it could shift short-term momentum.
Second, the Coinbase premium, a measure of U.S. buying pressure, is close to flipping positive. A confirmed move above zero would suggest renewed institutional demand.
Third, spot market volume has remained steady throughout the recent rally. Continued strength here would support organic buying rather than leverage-driven moves.
Finally, open interest should begin to climb gradually. A slow increase suggests healthy positioning, while a rapid spike could signal overcrowded trades and increase the risk of another flush.
$85K in Target if Support Holds
Sykodelic maintains a bullish outlook, pointing to Bitcoin’s resilience despite multiple opportunities to show weakness.
In his view, the $73,000 to $75,000 range represents the likely downside floor if a deeper correction occurs.
However, as long as $78,400 holds, he expects Bitcoin to begin targeting higher resistance levels, including the daily 200 EMA and the weekly 50 EMA, which sit near $85,000.
Meanwhile, if the level fails, attention shifts back to $75,000 as the next major support zone.
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