Bitcoin blasts through $77.000 and sets sights on crucial $80.000 zone

Bitcoin continues to surge, reaching $77.000. The price is breaking through several technical levels that until recently were seen as firm resistance. The sudden rally is hitting traders who had bet on another decline, with more than $1 billion in short positions liquidated in 24 hours.

Bitcoin breaks key technical levels

The charts show how quickly the technical picture is changing. Bitcoin was trading around $63.000 to $65.000 just a few days ago, but has since moved almost vertically higher.

On the weekly chart, BTC is once again breaking above several important indicators. The Bull Market Support Band sits around $69.470, while the 200-week EMA is at approximately $68.214. With the price around $77.000, Bitcoin is now trading well above both.

Analyst Ted Pillows is therefore focused on the next major test. In his view, a significant resistance zone lies between $78.000 and $80.000.

According to the analyst, a convincing reclaim of this zone would be an important sign that the bear market is coming to an end. That remains a technical expectation rather than a certainty. After such a rapid rise, a sharp correction is still possible.

Bears forced out of the market

The speed of the move is meanwhile causing heavy losses for short sellers. More than $1 billion in short positions has been liquidated over the past 24 hours.

That can itself add further momentum to the rally. When Bitcoin moves up quickly, leveraged positions held by traders betting on a decline are automatically closed. These positions have to be bought back, which creates additional buying pressure.

As a result, Bitcoin finds itself in a completely different technical situation in a very short space of time. Where the market previously struggled to hold above $65.000, the psychological $80.000 level is now coming into view.

That zone could prove crucial for what happens next. If Bitcoin convincingly reclaims $78.000 to $80.000, the bulls will again have a strong argument in their favour. A rejection at these levels after such an explosive rally could, on the other hand, trigger profit-taking and a fresh correction.