Bitcoin surges past $81000 on Friday. It pushed past $78,000 and $80,000 in a three-day recovery.
The rally came despite a turbulent week. Macro and regulatory news were mostly negative. Meanwhile, $300 million in leveraged crypto liquidations occurred over four hours. Traders on the wrong side were forced out.
Why Bitcoin surges past $81,000 matters
Bitcoin recovered after a pullback above $78,000. Then price hit $80,000. As a result, leveraged short traders found trouble. The market turned against them.
The rally coincided with a week lacking clear risk support. On Wednesday, the Fed raised rates by 25 basis points. The target range became 3.75%-4.00%. Two days later, the Bank of Japan raised its policy rate to 1.25%. That is the highest level in 31 years.
The dollar also moved. The dollar index reached 100.48 on Friday. Bitcoin moved through the $80,000 range at the same time. Consequently, higher borrowing costs and a stronger dollar drew attention.
CLARITY Act setback fails to hold Bitcoin down
Crypto traders also digested the Senate vote. The Digital Asset Market Clarity Act failed a procedural vote on Tuesday. Cloture failed by 49 votes to 50. Therefore, the bill could not advance at that stage.
As a result, Bitcoin slipped due to the Senate setback. However, the losses proved short-lived. At press time, BTC traded above $80,700. That was its highest level since September 3. Buyers returned and pushed price back through key levels.
The recovery left Bitcoin well above weekly lows. It brought the $81,000 area back into focus. Ethereum also reclaimed the $2,550 resistance.
Consequently, selling tied to the Senate vote did not persist. This was especially true after the CFTC filed a formal rulemaking document. The confidential filing went to the White House OIRA.
Bitcoin traders watch $83,000-$86,000 next
Attention now shifts above the current price. According to Glassnode, a thick liquidation area sits between $83,000 and $86,000. Short positioning accumulated there over recent weeks.
For the near term, the first question is whether Bitcoin holds above $80,000-$81,000. That range sits directly below the latest move. Traders may test it if they start taking profits.
If price slips back, Michael Van De Poppe predicted $78,000 becomes the first focus. Below that, the $76,400-$76,700 area remains another support zone. If price keeps climbing, BTC moves into the $83,000-$86,000 range.