Bitcoin reclaims $80K as short liquidations fuel recovery rally

Bitcoin has climbed back to the $80,000 level for the first time since February, marking a steady recovery from its earlier sharp correction. At press time, BTC traded around $80,000 after gaining nearly 2% on the day, as price action continued to build higher lows following its February decline. BTC trend shifts as price forms higher lows After dropping from near $95,000 to below $60,000 in February, Bitcoin entered a consolidation phase through March. The latest chart shows a gradual recovery structure, with BTC forming consistent higher lows into April and early May. This pattern has now pushed price back into the $80,000 zone, a key psychological level that previously acted as support before the February breakdown. The Relative Strength Index [RSI] has climbed to around 65, indicating strengthening momentum without entering overbought territory. Short liquidations drive upside momentum Derivatives data shows that a wave of short liquidations has supported the latest move higher. On 4 May alone, total short liquidations reached approximately $186 million, compared to around $56 million in long liquidations. This imbalance suggests that bearish positions were forced to close as the price moved higher, accelerating the upward move. Such liquidation-driven rallies often create short-term momentum, especially when price breaks above key resistance zones. $80K remains key level to watch Despite the recovery, Bitcoin has not yet confirmed a full trend reversal. The $80,000 zone now acts as a critical level, as it previously served as support before turning into resistance during the earlier decline. A sustained move above this level could open the door for a retest of higher ranges, while rejection may signal continued consolidation. Final Summary Bitcoin has returned to the $80,000 level for the first time since February, following a steady recovery from its earlier decline. The move has been driven in part by short liquidations, highlighting a shift in market positioning rather than a confirmed breakout.