Bitcoin Price Forecast: BTC reaches $80,500 amid mounting short liquidations

• Having closed above key EMAs the previous day, Bitcoin trades above $80,500 on Thursday as its recovery continues.
• Short positions represented 70% of the more than $700 million in positions liquidated over the last 24 hours.
• Wednesday brought modest inflows of $74.57 million into US-listed spot ETFs, ending a run of three consecutive days of outflows.

Nearly $800 million in liquidations over the past 24 hours, triggered by a short squeeze, accompany Bitcoin’s (BTC) continued rebound above $80,500 on Thursday. The advance follows a close above key Exponential Moving Averages (EMAs) the previous day. Institutional demand also showed a modest improvement: spot Exchange Traded Funds (ETFs) attracted $74.57 million on Wednesday, ending three consecutive days of outflows. Together, these developments point to firmer market sentiment and a return of buying interest, potentially supporting the Crypto King’s recovery.

Risk assets gain support from US political gridlock

Democrats secured both the House and the Senate in the closely awaited US midterm elections. By removing a significant source of uncertainty, the result reduced expectations of renewed military strikes against Iran by US President Donald Trump. 

On Wednesday, Senate Democratic Leader Chuck Schumer pledged to seek an end to the Iran war, saying his party could use its control over government funding to pursue that objective. 

Crude oil prices are falling as optimism builds, helping to ease inflation concerns. West Texas Intermediate (WTI) trades around $87 on Thursday, at levels last seen in early September.

At the same time, the prospect of fiscal gridlock in Washington further constraining government spending is weighing on US bond yields. This is keeping the US Dollar (USD) under pressure and supporting risk assets, with BTC regaining $80,500.

Liquidations exceed $700 million

The Coinglass chart below shows $794.30 million in positions liquidated over the past 24 hours, a period of increased BTC volatility discussed in the previous report. 

Shorts accounted for 70% of those liquidations, indicating that leveraged bearish traders bore the brunt as BTC moved above $80,000. Forced closures of short positions may, in turn, have intensified buying pressure and hastened the Crypto King’s rebound.

ETFs attract modest inflows

Wednesday’s $74.57 million inflow into BTC spot ETFs ended three consecutive days of outflows, according to SoSoValue data, offering a tentative sign of optimism in institutional demand. A continuation and strengthening of these inflows through the rest of this week could help BTC extend its recovery.

Bitcoin technical outlook: Price climbs above key EMAs

At $80,777 on Thursday, Bitcoin retains a constructive bullish bias above its 50-day, 100-day and 200-day Exponential Moving Averages (EMAs), which stand at $80,172, $77,904 and $76,547 respectively. With price holding above these averages, the broader upward trend appears intact. Meanwhile, a Relative Strength Index (RSI) reading of 51 and a newly positive Moving Average Convergence Divergence (MACD) histogram suggest bullish momentum is recovering, rather than signalling overbought conditions.

Should the advance continue, horizontal resistance at $85,000 presents the next major obstacle and a possible point for profit-taking.

Support initially lies around $80,172 at the 50-day EMA. Below that, the 100-day EMA near $77,904 and the 200-day EMA at $76,547 provide further support. As long as BTC stays above this layered EMA support zone, the bullish outlook is likely to remain in place.

(The technical analysis of this story was written with the help of an AI tool. Know more.)