Key takeaways
- Bitcoin (BTC) climbed above $80,200 on Thursday, extending its recovery after reclaiming the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs).
- US spot Bitcoin ETFs recorded $74.57 million in net inflows on Wednesday, ending three consecutive days of withdrawals.
- BTC faces its next major resistance at $85,000, while the 50-day EMA near $80,172 provides immediate support.
Bitcoin (BTC) extended its recovery on Thursday, climbing above $80,200 as a wave of short liquidations and renewed inflows into US spot Bitcoin exchange-traded funds (ETFs) helped improve market sentiment.
The leading cryptocurrency traded around $80,200 after closing above its major exponential moving averages during the previous session.
The rebound followed heightened volatility across cryptocurrency derivatives markets, where approximately $694.40 million in leveraged positions were liquidated over 24 hours.
Short positions accounted for most of those liquidations, suggesting that traders betting on further declines were forced to unwind their positions as Bitcoin reclaimed the psychological $80,000 level.
Institutional demand also showed early signs of stabilization, with spot Bitcoin ETFs attracting $74.57 million in net inflows on Wednesday after three consecutive days of outflows.
Meanwhile, the outcome of the US midterm elections contributed to improving sentiment across risk-sensitive assets, supported by declining oil prices and easing bond yields.
Bitcoin rebounds as US Midterm election results lift risk appetite
Bitcoin’s recovery gathered momentum following the US midterm elections, which saw Democrats secure control of both the House of Representatives and the Senate.
The results introduced a divided-government environment, potentially limiting President Donald Trump’s ability to advance certain legislative and fiscal priorities without congressional support.
Investors also assessed the implications for US foreign policy, particularly the ongoing conflict with Iran.
Senate Democratic Leader Chuck Schumer said Wednesday that his party would seek to end the Iran war and could use its control over government funding to push for that outcome.
The political developments contributed to expectations that the risk of further military escalation could diminish.
However, the election results do not guarantee a change in military policy, and uncertainty surrounding the conflict remains.
Bitcoin’s move above $80,200 coincided with these developments, although the recovery was also supported by substantial derivatives market activity.
A sharp unwinding of leveraged positions contributed to Bitcoin’s latest price advance. According to CoinGlass, approximately $694.40 million in cryptocurrency derivatives positions were liquidated over the preceding 24 hours.
Short positions accounted for roughly 70% of the total, equivalent to approximately $556 million. The imbalance indicates that bearish traders suffered the largest losses as cryptocurrency prices recovered.
Bitcoin reclaims major moving averages
Bitcoin’s daily technical outlook has improved after the cryptocurrency moved above its 50-day, 100-day, and 200-day exponential moving averages.
BTC traded around $80,200 on Thursday, remaining above the 50-day EMA at $80,172. The 100-day EMA stands at $77,904, while the 200-day EMA is located near $76,547.
Exponential moving averages help traders assess market direction by placing greater emphasis on recent price movements.
Trading above these indicators suggests that Bitcoin has regained important technical support following the recent downturn.
However, Bitcoin’s immediate challenge is to maintain its position above the 50-day EMA. A sustained hold above $80,172 would strengthen the recovery outlook and suggest that buyers are defending the reclaimed technical level.
Failure to hold this area could trigger renewed selling pressure and increase the likelihood of a pullback toward lower support zones.
Momentum indicators on Bitcoin’s daily chart also point to improving market conditions. The Relative Strength Index (RSI) stands near 49, slightly below its neutral midpoint.
Meanwhile, the Moving Average Convergence Divergence (MACD) histogram has turned positive. A move into positive territory indicates that momentum is shifting in favor of buyers.
Bitcoin’s immediate technical outlook remains constructive as long as the cryptocurrency maintains support above its major moving averages.
The next significant upside resistance is located at $85,000. This horizontal level could attract profit-taking if the recovery continues.
A sustained breakout above $85,000 would strengthen the bullish outlook, although the supplied technical data does not establish a confirmed higher resistance target.
On the downside, the first important support level stands at the 50-day EMA near $80,172.
This area is particularly significant because it sits close to the psychological $80,000 threshold.
A daily close below the 50-day EMA could weaken near-term momentum and expose the 100-day EMA at $77,904. If selling pressure intensifies, the next major support would be the 200-day EMA near $76,547.
A sustained break below the 200-day EMA would undermine the current bullish technical structure and raise the risk of a deeper correction.
For now, the combination of reclaimed moving averages and improving momentum indicators favors further recovery, provided buyers continue defending the support zone.
