FX.co ★ Crude | #Bitcoin chart analysis

Bitcoin (BTC) continued its strong upward momentum on Friday, breaching the $80,500 mark and reaching a high of $80,777, following a firm close above a key exponential moving average (EMA) in the previous trading session. This significant price surge was primarily driven by an intense "short squeeze"; over the past 24 hours, the derivatives market saw liquidations totaling $794.3 million. According to Coinglass data, approximately 70% of these liquidated positions were short contracts. As the spot price of Bitcoin climbed back above $80,000, traders holding leveraged short positions were forced to close them, triggering a cascade of forced buy orders that accelerated the price increase. Beyond the strong technical indicators, institutional demand also showed signs of stabilization: on Wednesday, U.S. spot Bitcoin exchange-traded funds (ETFs) recorded a net inflow of $74.57 million, ending a three-day streak of outflows and signaling a recovery in confidence among institutional participants. Furthermore, with the conclusion of the U.S. midterm congressional elections—resulting in a Democratic majority in both the House of Representatives and the Senate—the economic and political climate has become more favorable for high-risk assets. The election results have removed significant political uncertainty and eased market concerns regarding the potential for President Donald Trump to resume military operations against Iran. Furthermore, Senate Majority Leader Chuck Schumer’s announcement of plans to utilize legislative oversight and government appropriations to push for an end to the conflict with Iran has bolstered overall market sentiment. This shift in foreign policy expectations has led to a decline in global energy prices—with West Texas Intermediate (WTI) crude falling to approximately $87 per barrel, its lowest level since early September—thereby somewhat alleviating market anxieties about medium-term inflation. Additionally, market expectations that legislative gridlock in Washington will constrain federal government spending have exerted downward pressure on U.S. Treasury yields and contributed to continued weakness in the U.S. dollar, creating an ideal economic environment for Bitcoin to climb back above $80,500. From a technical perspective, the daily Bitcoin chart displays a robust bullish structure. The spot price of Bitcoin is holding above several key exponential moving averages (EMAs), which are aligned in a bullish configuration: the 50-day EMA ($80,172), the 100-day EMA ($77,904), and the 200-day EMA ($76,547). This bullish pattern signals that the overall long-term upward trend for Bitcoin remains strong. Momentum indicators reinforce this optimistic outlook: the 14-day Relative Strength Index (RSI) stands at 51, reflecting strong, balanced buying power that has yet to reach the overbought zone. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram has turned positive, confirming an increase in bullish momentum. On the upside, current structural resistance lies at the $85,000 level; should the rally continue, this point could trigger short-term profit-taking. On the downside, the 50-day Exponential Moving Average (EMA)—at approximately $80,172—serves as an initial dynamic support level, followed by the 100-day EMA (around $77,904) and the 200-day EMA ($76,547), which provide further layers of support. As long as Bitcoin remains above this support zone, its overall trend remains bullish.