Bitcoin nears $80,000 as traders target $90,000 breakout

Bitcoin trades at $78,911 as of 14:30 UTC Aug. 24, up 1.4 percent in 24 hours, as Treasury buybacks and record short liquidations push BTC toward $80,000.

"Bitcoin's breakout was preceded by repeated tests of weekly resistance after bouncing from monthly support," DonAlt said on the Aug. 22 episode of Technical Roundup, adding that the shift from low-volatility consolidation to momentum-driven trading could carry BTC toward $90,000.

The rally has been broad-based, with Bitcoin up 27 percent over the past month. Spot Bitcoin ETFs recorded $1.92 billion in net inflows last week, the strongest weekly total since October 2025. CoinGlass data shows over $2.75 billion in Bitcoin shorts were liquidated on Wednesday, with a further $783.2 million in positions liquidated over the following 24 hours. Bitcoin dominance has climbed to nearly 60 percent, suggesting capital is rotating from altcoins toward the flagship asset. Market cap stands near $1.5 trillion with 24-hour volume at roughly $59 billion.

The next test comes Wednesday when US core PCE inflation data is released, followed by Fed Chair Kevin Warsh's speech at Jackson Hole on Friday. A cooler reading could push Bitcoin through $80,000 and toward the $82,800 level, where a decisive break would open the path to $90,000.

Why the $80,000 to $90,000 zone is thin

Hashdex Chief Investment Officer Samir Kerbage said consolidation between $75,000 and $83,000 would help the market build a base before attempting higher levels. "The region between $80k and $90k has very little historical volume, and price tends to move through thin zones quickly, for better or worse," Kerbage said. "A sustained move above $83k might open the path toward testing the $100k area."

Ryan Lee, chief analyst at Bitget Research, expects Bitcoin to trade between $74,000 and $81,000 in the near term, with a sustained push above $80,000 opening a path toward $82,000-$87,000. Joel Kruger, market strategist at LMAX Group, sees $83,000 as the next major upside level, attributing the rally to weaker long-term Treasury yields, dollar weakness, renewed ETF demand and short liquidations.

What could derail the rally

The setup weakens on a daily close back below $74,450, the former April resistance that now must hold as support. Losing the 200-day EMA at $71,549 would put the entire breakout in question. The daily RSI has spiked to 83.05, well beyond the standard 70 threshold, and overbought conditions typically resolve through either a sharp pullback or sideways consolidation.

The bigger question is who buys next. Short sellers closing losing positions helped push Bitcoin higher during the recent rally. The market now needs spot demand, including continued institutional purchases through ETFs, to take their place. Roughly $3.5 billion in cumulative short liquidations built this rally, and once that fuel is spent, price needs organic demand at levels that were resistance a week ago.

Ethereum, meanwhile, has drawn trader interest as the more compelling setup. DonAlt said ETH remains the more interesting coin, even as Bitcoin leads the current leg higher. Ether is up 25 percent on the week, outpacing Bitcoin's 19 percent gain, while XRP has added 28 percent.

The most likely near-term path is consolidation between $74,450 and $77,489 that works off the overbought reading before another attempt at $80,000. A daily close above $77,489, the 78.6 percent retracement of the decline from $82,850 to $57,800, would open the path toward the $82,850 swing high and eventually $90,000.

This article is for informational purposes only and does not constitute investment advice.