$80,500 reached by BTC as short liquidations rise: Bitcoin Price Forecast

• $80,500 has been surpassed as Bitcoin’s recovery continues on Thursday. The move follows Wednesday’s close above key EMAs.
• More than $700 million in positions were liquidated over the past 24 hours; shorts represented 70% of the total.
• A modest $74.57 million inflow into US-listed spot ETFs on Wednesday ended a run of three consecutive days of outflows.

$80,500 has been cleared by Bitcoin (BTC) on Thursday. Its recovery extends the previous day’s close above key Exponential Moving Averages (EMAs). A short squeeze has accompanied the rebound, triggering nearly $800 million in liquidations over the past 24 hours. Institutional demand has also shown tentative improvement: spot Exchange Traded Funds (ETFs) attracted $74.57 million on Wednesday after three consecutive days of outflows. Together, these developments point to firmer market sentiment and a return of buying interest that could sustain the Crypto King’s recovery.

US political gridlock underpins risk assets

Democrats secured both the House and the Senate in the much-anticipated US midterm elections. The result removed a major source of uncertainty while reducing 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. He said his party could leverage its control of government funding to pursue that objective. 

Crude oil has come under pressure as optimism builds, helping to ease inflation concerns. West Texas Intermediate (WTI) traded around $87 on Thursday, a level last seen in early September.

Expectations of fiscal gridlock in Washington are also weighing on US bond yields, as investors anticipate further constraints on government spending. The resulting pressure on the US Dollar (USD) is supporting risk assets, with BTC regaining $80,500.

$700 million-plus in positions liquidated

The past 24 hours brought increased BTC volatility, as discussed in the previous report. The Coinglass chart below shows $794.30 million in liquidated positions. 

Shorts made up 70% of those liquidations, indicating that leveraged bearish traders bore the largest losses as BTC moved above $80,000. Forced closures of short positions may have intensified buying pressure and quickened the Crypto King’s rebound.

$74.57 million in modest ETF inflows

Tentative optimism is emerging in institutional demand for BTC. According to SoSoValue, BTC spot ETFs attracted a modest $74.57 million on Wednesday, ending three consecutive days of outflows. A continuation and strengthening of these inflows through the week could help BTC recover further.

$80,777: Bitcoin technical outlook above key EMAs

At $80,777 on Thursday, Bitcoin retains a positive bullish bias. Its price sits above the 50-day, 100-day and 200-day Exponential Moving Averages (EMAs), at $80,172, $77,904 and $76,547 respectively, suggesting the broader uptrend remains intact. A Relative Strength Index (RSI) reading of 51, alongside a Moving Average Convergence Divergence (MACD) histogram that has moved into positive territory, signals a recovery in bullish momentum rather than overbought conditions.

Horizontal resistance at $85,000 marks the next major upside barrier. An extension of the rally towards that level could prompt profit-taking.

The 50-day EMA around $80,172 offers the first downside support. Below it sit the 100-day EMA near $77,904 and the 200-day EMA at $76,547. BTC is likely to retain its bullish outlook while it stays above this layered EMA support zone.

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