Weekly Crypto News: Bitcoin touches $80,000 as sentiment improves
- Bitcoin briefly topped the $80,000 mark on Monday, the highest level in three months, liquidating $138 million in shorts.
- Crypto sentiment improves, with inflows into US-listed spot ETFs totaling $154 million last week.
- Around $59 million in token unlocks are expected this week, which could heighten market volatility.
Bitcoin (BTC) is trading near $80,000 at the time of writing on Monday, after pulling back from a three-month high at $80,635. The crypto market is generally bullish, with major altcoins such as Ethereum (ETH) and Ripple (XRP) posting modest daily gains.
Strengthening market sentiment is driving a more bullish outlook, as evidenced by increased capital inflows into digital asset investment products.
Bitcoin rebounds amid easing selling pressure
Crypto market sentiment edges higher, with the Fear & Greed Index holding at 47 as of writing on Monday, up sharply from 29 the previous day. While the index remains in the fear zone, this level represents a substantial increase from last month’s average of 11, which is extreme fear territory.
A steady increase in the index would strengthen the crypto market’s recovery outlook, raising the odds of Bitcoin reclaiming support above $80,000 and grinding toward $90,000.
Bitcoin spot Exchange-Traded Funds (ETFs) marked five consecutive weeks of inflows with $154 million recorded through Friday. Although a markdown from the previous week’s $824 million in capital inflows, the data show a steady appetite for risk assets despite the geopolitical uncertainty surrounding the United States (US)-Iran conflict.
Cumulative inflows now stand at $58.72 billion, with net assets under management averaging $103.78 billion. The demand for spot ETFs aligns with the rising sentiment in the crypto market.
Bitcoin’s surge above $80,000 triggered liquidations, with short position holders losing roughly $138 million on Monday. In contrast, nearly $46 million in long positions has been liquidated. Reclaiming $80,000 as support could boost investor conviction and expand BTC’s recovery potential.
Chart of the week: Bitcoin poised to extend gains above $80,000
Bitcoin trades at $79,772, consolidating in a neutral, range-bound structure after rebounding from its 200-week Exponential Moving Average (EMA) near $68,062. The Crypto King now sits above this long-term EMA support but remains below the 100-week EMA at $82,352 and the 50-week EMA at $85,777, which together hint at a still-capped broader trend despite improving tone.
The Relative Strength Index (RSI) at 48 on the weekly chart stays close to the midline, while the Moving Average Convergence Divergence (MACD) histogram holds in positive territory, suggesting recovering but not yet dominant bullish momentum as the market digests prior losses.
On the downside, initial support lies at the 200-week EMA around $68,061, with a deeper floor emerging near the prior descending trendline break level at $65,981 if sellers regain control. On the topside, immediate resistance is seen at the 100-week EMA at $82,352, followed by a stronger supply zone at the 50-week EMA near $85,777. A sustained weekly close above this upper band would be needed to tilt the medium-term bias more convincingly back in favor of the bulls.
Upcoming $59 million token unlocks signal potential volatility
Several token unlock events, totaling $59 million, are expected this week, led by Canton’s $22.61 million, Tangible’s $2.93 million and Chelee’s $2.77 million on Monday.
Other notable releases include Stepn’s roughly $539,000 on on Friday and Stable’s $29.33 million on Saturday. Cumulative unlocks total $59 million, which could trigger volatility, particularly for the concerned tokens.
Token unlocks are considered scheduled supply shocks, which can result in higher volatility. Anticipatory selling can occur before the events. However, the exact impact of the unlocks is nuanced, with instances of pricing in effects.
(The technical analysis of this story was written with the help of an AI tool.)
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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