Bitcoin is holding firm above the $80,000 mark, trading near $80,985 after a 4% gain in the last 24 hours. The digital asset briefly touched $82,000 before pulling back, as market participants digest the latest signals from the Federal Reserve.
Federal Reserve Governor Christopher Waller's remarks have been the primary catalyst. He indicated support for keeping interest rates unchanged at the September 15-16 FOMC meeting, provided upcoming inflation data shows continued progress toward the 2% target. This dovish tone quickly shifted rate expectations, with the probability of a September hike dropping to roughly 50% from over 63% the previous day.
The shift in monetary policy expectations rippled through traditional markets. US Treasury yields declined, with the 10-year yield falling toward 4.75% and the two-year yield approaching 4.33%. The US dollar index slipped more than 0.5%, while major equity indices rallied—the Dow gained 1.18%, the S&P 500 rose 1.06%, and the Nasdaq climbed 1.40%.
Leveraged positioning amplified Bitcoin's upward move. According to CoinGlass, total crypto liquidations exceeded $500 million in 24 hours, with roughly $416 million in short positions wiped out. Over 119,000 traders were liquidated as BTC crossed key levels at $79,000 and $80,000, forcing short sellers to buy back and accelerating the rally.
Institutional interest remains supportive. US spot Bitcoin ETFs recorded approximately $101.2 million in net inflows on Wednesday, reversing the previous session's $236.5 million in outflows. This renewed demand adds a fundamental underpinning to the price action.
Looking at the liquidation heatmap, the nearest significant cluster of leveraged positions sits between $81,800 and $82,300. A decisive move through this zone could trigger further short covering, with additional liquidity visible toward $84,000. On the downside, support clusters are located around $79,800-$80,300 and $78,700-$79,000.
Technical analysis: key levels to watch
On the daily chart, Bitcoin is trading just below the May swing high at $81,455, which aligns with the 0 Fibonacci level. This is the immediate resistance that buyers need to overcome on a daily closing basis. The Ultimate Oscillator has recovered to 58.87 from the mid-30s during August's pullback, indicating improving momentum without being overbought.
A confirmed break above $81,455 would open the path toward the $82,000-$82,300 liquidation zone. Clearing that could lead to a move toward $84,000, where more short liquidity is concentrated. The next psychological level would be $85,000 if buyers maintain control.
On the 4-hour chart, Bitcoin has been trading in a range between roughly $76,000 and $81,000 since late August, with the latest push breaking above the upper boundary. The Aroon indicator shows a strong uptrend, with Aroon Up at 85.71% versus Aroon Down at 21.43%, suggesting recent highs are occurring much more frequently than lows. The Chande Momentum Oscillator has surged to 65.87, confirming strong positive momentum.
Holding above $80,000 keeps Bitcoin positioned for another attempt at $81,455 and the $82,000-$82,300 liquidity zone. A 4-hour close below $80,000 would bring the dense liquidation area beneath into play, with the next support at $78,700-$79,000.
For broader context, the recent Ethereum price action and XRP open interest suggest that altcoins are also reacting to the improved risk sentiment. Meanwhile, silver's resilience and Bonk's CPI-driven surge highlight the broad market response to easing rate fears.
This article is for informational purposes only and does not constitute financial advice.
