Bitcoin surged to $80,846, posting a 5.88% gain over 24 hours, after the Federal Reserve raised interest rates by 25 basis points while projecting a median policy rate of just 4.1% through the end of 2027. The dovish guidance, implying only one additional rate move rather than sustained tightening, helped reverse earlier losses for the cryptocurrency.
The sharp price move has triggered significant liquidations in leveraged positions. Across the crypto market, over $445 million in short bets have been closed out, with Bitcoin accounting for more than $230 million of that total. A short squeeze occurs when forced buying to cover losing short positions pushes prices higher, cascading into additional liquidations.
Bitcoin opened the trading session at $76,355 before reaching an intraday high of $80,857. The move recovers recent losses but leaves Bitcoin down nearly 20% from its previous all-time high.
Technical Signals Show Bullish Structure
Multiple technical indicators suggest sustained momentum. The Average Directional Index sits at 40.6, well above the 25 threshold traders use to confirm trend strength, with the positive directional line above the negative line indicating buyer control. The 50-day exponential moving average is trading above the 200-day EMA, a pattern known as a golden cross that Bitcoin established last week.
The Relative Strength Index reads 63.3, solidly in bullish territory but not yet at the overbought threshold of 70. However, the Squeeze Momentum Indicator has remained active for 11 consecutive bars, indicating compressed volatility over nearly two weeks. Traders monitor such periods because longer compression typically precedes more explosive volatility releases.
Key Resistance and Support Levels
Immediate resistance sits at $82,281, the top of the current Fibonacci leg. Bulls need to close above this level to confirm the breakout. Support layers are positioned at $75,569, representing the 61.8% retracement level, and more firmly at $68,858, which marks the origin of the current leg.
