In the last 24 hours, Bitcoin (BTC) has repeatedly broken above the $80,000 psychological level, having abandoned it in January. The burning question in the market now is whether this marks a bullish reversal or simply a fakeout.
Achieving $80K was triggered by a massive short squeeze. According to crypto market data and analytics platform CoinGlass, short trader liquidations totalled $199.32 million in the past 24 hours,
Another contributory factor is renewed institutional interest in the flagship coin. This was evidenced by $629.8 million in spot Bitcoin ETF inflows on May 1 and $603.14 million on May 4.
Even more, Strive recently acquired 444 BTC, bringing its treasury to 15,000 BTC and making it the 9th largest public corporate Bitcoin holder globally. Meanwhile, Strategy announced a temporary pause in its Bitcoin purchases to remain compliant with regulations ahead of its May 5 Q1 2026 earnings report.
As prices crested at $80K, the 2-3 year BTC holding cohort, or those who accumulated just before the crypto ETF launches, ramped up their profit-taking. According to on-chain intelligence platform Glassnode, this group liquidated $209 million/hr, cashing in profits of 60%-100%.
Source: Glassnode
Still, Bitcoin remains indecisive about maintaining the $80K milestone. Multiple closes above this level could ignite a short squeeze, leading to $84,000-$85,500.
Another sign of a bullish reversal would be BTC forming higher highs while its relative strength index (RSI) forms lower highs. Currently, the RSI reads 65.
Additionally, the 24-hour Bitcoin trading volume rallied to $56.51 billion on May 4, up from $16.76 billion on May 2. While indicating high short-term growth, these trading volumes remain lower than those recorded during previous breakouts. A periststent uptrend would demand even higher volumes, indicating strong institutional conviction and unwavering absorption of overhead supply.
To keep a bullish structure intact, prices must hold above the $72,352 100-day moving average. Defensive zones would be between $73,000 – $75,000, where a fall below this would suggest the upswing was but a bull trap.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
The petrodollar arrangement that has underpinned global finance for decades is under more pressure than…
Pi Network's two co-founders will speak at Consensus Miami 2026 this week, presenting at one…
Investors and traders have been staring at the same boring sideways SKYAI chart, but this…
TAG price had a mesmerizing clean breakout rally this week. After months stuck in a…
If you ask a hundred crypto traders what separates those who last from those who…
In today's rapidly changing cryptocurrency market, a growing number of investors are focusing on a…
