Bitcoin hits $80k for the first time since May as rally continues

Bitcoin extended its rally on Tuesday, hitting the $80,000 psychological level for the first time since May 4.

The rally comes as improving liquidity expectations continued to lift the broader cryptocurrency market.

Bitcoin has gained nearly 30% in the last week, while Ethereum has risen more than 25% and XRP has advanced almost 30%.

The rally gained momentum after the U.S. Treasury announced plans to double the size of certain debt buyback operations.

The decision eased liquidity concerns and strengthened demand for risk-sensitive assets.

With Bitcoin still flying, investors are now watching whether it can extend its rally and reach the $85,000 level.

Bitcoin rally persists as Treasury buyback expansion strengthens crypto rally

The primary catalyst behind Bitcoin’s rally over the past seven days is the U.S. Treasury’s decision to expand its debt buyback program.

Larger buybacks can support liquidity in the market for longer-dated Treasury securities, easing financial pressures and encouraging investors to increase their exposure to riskier assets.

Major cryptocurrencies including Bitcoin, Ethereum, and XRP responded strongly to the announcement, recording double-digit weekly gains.

Short liquidations also accelerated the rally as bearish traders were forced to close their positions, adding further buying pressure.

Bitcoin has now hit the $80,000 level on Friday after decisively breaking above its major exponential moving averages.

The 200-day EMA stands at $71,545, while the 100-day and 50-day EMAs are located at $66,727 and $65,286, respectively.

BTC’s position above all three indicators supports a bullish near-term outlook and suggests the market’s broader technical structure has improved considerably.

Market data shows that the current breakout is accompanied by strong trading volume, adding credibility to the latest upward move.

If Bitcoin continues to trade above the 200-day EMA, it would reinforce the case for further gains and could establish the level as new support.

BTC bulls target the $82,689 resistance

Bitcoin’s next major resistance lies near the psychological and horizontal barrier at $82,689.

Buyers have pushed Bitcoin’s price past the $80,000 level, ensuring that fresh selling pressure doesn’t dampen the ongoing rally.

A decisive break and daily close above the $82,689 barrier would strengthen the bullish outlook and potentially open the way to higher levels.

Failure to clear $82,689 could lead to a period of consolidation as traders digest the recent gains.

Bitcoin’s momentum indicators remain bullish but increasingly stretched. The relative strength index is hovering near 85, placing BTC firmly in overbought territory.

Such a high reading does not guarantee an immediate reversal, but it indicates that the rally may be vulnerable to a corrective pause.

The moving average convergence divergence remains strongly positive, showing that upward momentum is still intact.

Together, the indicators suggest bulls remain in control, although the risk of short-term profit-taking has increased.

If the bears regain control,  initial support sits at the 200-day EMA near $74,700. Holding above this indicator would preserve the immediate bullish structure and could provide a foundation for another attempt at $83,000.

A deeper correction could bring the 100-day EMA at $71,545 and the nearby horizontal level at $66,727 into focus.

Below that region, the 50-day EMA at $65,286 offers another layer of support, followed by the structural floor at $62,300.

A sustained decline below $62,300 would weaken the broader bullish outlook, while continued trading above the 200-day EMA would keep the $80,000 target within reach.