Bitcoin’s $80,000 Return Faces an $82,300 Confirmation Test

Bitcoin broke above $80,000 for the first time since September 7, while more than $183 million in short positions were liquidated within a single hour. Total liquidations during that hour reached $192 million. More than 100,000 traders were liquidated over the broader daily timeframe, but forced deleveraging on that scale does not by itself settle whether Bitcoin’s recent consolidation has ended.

The move followed a volatile week for Bitcoin. The cryptocurrency fell to $75,000 on Tuesday evening following the setback to the CLARITY Act in the US Senate. A day later, the Federal Reserve raised its target range by 25 basis points to 3.75%-4.00%, its first increase since July 2023. Bitcoin rebounded almost immediately after the Fed shock and moved above $76,000.

Bitcoin then fluctuated in the following days before the Bank of Japan raised rates to a 31-year high. The decision was well received by the cryptocurrency market, with BTC rising to just over $78,000. It remained around that level for hours before rising above $80,000.

(Source – Coinglass, Bitcoin Liquidations – 4H)

CoinGlass data showed $192 million in over-leveraged positions liquidated in the final hour of the move, with shorts accounting for more than $183 million. BTC represented $119 million of those liquidations, and ETH another $36 million. Ethereum moved above $2,550 after a 2.3% hourly gain, while XRP rose above $1.35 after a 3% increase. SOL and BNB also posted gains.

The documented price sequence shows Bitcoin falling to $75,000 after the CLARITY Act setback, recovering above $76,000 after the Federal Reserve decision, later moving above $78,000 following the Bank of Japan’s rate increase, and then rising above $80,000. The $80,000 level had last been breached on September 7. The next step remains a technical question rather than a settled conclusion.

A move above $82,300 would therefore test whether the recovery can extend beyond the resistance that contained the August advance. A rejection at that level, by contrast, would be consistent with consolidation.

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