Key Takeaways
Bitcoin (BTC) climbed above $82,000 on Wednesday, gaining 1.3% since midnight UTC as a weakening U.S. dollar and falling oil prices improved sentiment for risk assets. The largest cryptocurrency by market capitalization traded at $82,164 at the time of writing.
The dollar's weakness came after U.S. Secretary of State Marco Rubio said America had "achieved its military objectives" and was "not interested in further escalation," according to reports. The news prompted a drop in oil prices and a rally in risk assets, with investors seeing a greater chance the Federal Reserve could begin a rate-cutting cycle.
The move saw Bitcoin reclaim its short-term holder (STH) cost basis of $79,000, a key on-chain level that has historically signaled the end of consolidation periods, according to data from Glassnode. The STH spent output profit ratio (SOPR) also flipped above 1.0, indicating recent buyers are back in profit and selling pressure may be easing.
Analysts now see the $84,000 to $86,000 zone as the next major resistance. A decisive break above this area, which holds a large concentration of sell orders according to CoinGlass data, could open a path toward the 50-week moving average around $90,000.
Ether (ETH), the second-largest cryptocurrency, gained 0.8% to trade at $2,380 but continued to lag Bitcoin's performance, remaining below its April 17 high. Broader altcoin markets showed more significant strength, with privacy coins Zcash (ZEC) and Dash (DASH) surging 14% and 16% respectively. The rallies appear driven by renewed investor confidence after a multi-month consolidation.
Capital also appeared to rotate from a recent rally in memecoins toward other sectors. Components of the CoinDesk Computing Select Index (CPUS), such as Chainlink (LINK) and Bittensor (TAO), posted gains of 3.1% and 2.0% respectively.
Derivatives data shows that positioning in Bitcoin futures remains elevated, with open interest near a record high of 800,000 BTC. However, perpetual funding rates are flat, suggesting the market is being led by steady demand rather than speculative excess.
This article is for informational purposes only and does not constitute investment advice.
