Bitcoin Jumps Above $81,000 as Crypto Liquidations Hit $300M in Four Hours

Bitcoin surged past $81,000 on Friday after pushing past $78,000 and $80,000 in a three-day recovery, despite the turbulent week full of negative macro and regulatory news. The move came alongside $300 million in leveraged crypto liquidations over four hours, as traders caught on the wrong side of the rally were forced out of positions.

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Bitcoin Pushes Through $80,000 as Shorts Get Squeezed

Bitcoin appeared to recover following a pullback above $78,000. However, when the price hit $80,000, traders with leveraged short strategies began to find themselves in trouble as the market turned against them.

The rally coincided with a week that lacked clear risk asset market support. On Wednesday, the Federal Reserve increased its target rate by 25 basis points to 3.75%-4.00%. Two days later, the Bank of Japan raised its policy rate to 1.25%, the highest level in 31 years.

The dollar was also on the move, with the dollar index reaching 100.48 on Friday, while Bitcoin moved through the $80,000 range. That combination attracted attention as higher borrowing costs and a stronger dollar had already put pressure on broader market sentiment during the week.

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CLARITY Act Setback Fails to Hold Bitcoin Down

Crypto traders were also digesting the Senate vote on the Digital Asset Market Clarity Act. On Tuesday, cloture on the motion to proceed failed by 49 votes to 50, leaving the bill unable to advance at that stage.

As a result, Bitcoin slipped due to the Senate setback for the CLARITY Act, but the losses proved short-lived. At press time, BTC was trading above $80,700, its highest level since September 3, after buyers returned and pushed the price back through key levels.

The recovery left Bitcoin well above its earlier weekly lows and brought the $81,000 area back into focus, as well as Ethereum reclaiming the $2550 resistance.

Consequently, the move showed that selling tied to the Senate vote did not persist through the end of the week, especially with the CFTC submitting a formal, confidential rulemaking filing to the White House Office of Information and Regulatory Affairs (OIRA).

Bitcoin Traders Watch $83,000-$86,000 Next

Attention is now shifting to the area above the current price. According to Glassnode, there is a thick liquidation area between $83,000 and $86,000, with short positioning accumulated over the past few weeks.

BTC Liquidation Map (Source: Glassnode)

For the near term, the first question is whether Bitcoin can stay above the $80,000-$81,000 area. That range is now directly below the latest move and could be tested if traders start taking profits.

If the price slips back, Michael Van De Poppe has predicted $78,000 is the first level likely to return to focus. Below that, the $76,400-$76,700 area remains another support zone from the recent trading range. If it keeps climbing, the BTC price will be moving into the $83,000-$86,000 range.