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- Bitcoin defended the $76K support zone multiple times this week.
- Over $4 billion in BTC short positions could be liquidated above $80K.
- Futures traders remain bullish despite weak spot demand and macro uncertainty.
Bitcoin rebounded toward $78,000 this week after repeatedly defending support near $76,100, signaling that traders are increasingly confident the recent correction may be losing steam. While broader macroeconomic conditions remain fragile, derivatives data suggests bullish momentum is quietly building beneath the surface.
Professional traders on major exchanges have steadily reduced short exposure over the past several days. Long-to-short ratios on Binance and OKX climbed to their highest levels in roughly two weeks, reflecting growing confidence that Bitcoin can maintain its current support zone.
At the same time, technical indicators on lower time frames are flashing early bullish signals. Bitcoin formed a bullish divergence on the one-hour chart, where momentum improved even as prices briefly weakened. Analysts are also watching an inverse head-and-shoulders pattern forming below a descending resistance trendline — a setup often associated with potential breakout moves.
$4 Billion Short Squeeze Threat Emerges Near $80K
The most important battleground now sits around the $80,000 level.
According to liquidation heatmap data from CoinGlass, more than $4 billion in leveraged short positions could be wiped out if Bitcoin pushes above $80,000. By comparison, a move lower toward $75,000 would expose a smaller pool of roughly $3 billion in long liquidations.
This imbalance creates conditions for a possible short squeeze, where forced liquidations accelerate upward price action. Bitcoin has already started testing resistance near $78,000 after holding support throughout the week.
A break above current levels could also send BTC into a fair-value gap between $79,500 and $80,300 — an area created during a previous rapid selloff that markets often revisit before establishing a clearer direction.
Macro Pressures Still Cloud Bitcoin’s Outlook
Despite improving trader sentiment, macroeconomic risks continue to limit bullish conviction.
Recent guidance from Walmart rattled investors after the retail giant warned that persistently high oil prices and pressure on lower-income consumers could weaken future growth. The company’s cautious outlook added to concerns that the US economy may be slowing more sharply than expected.
Meanwhile, Brent crude oil prices have remained elevated above $95 amid ongoing geopolitical tensions tied to Iran and disruptions around the Strait of Hormuz. Rising energy costs have complicated expectations for the Federal Reserve, with markets now pricing in a growing chance of interest rate hikes by September 2026.
Institutional demand for Bitcoin also remains soft. US-listed spot Bitcoin ETFs have recorded billions in net outflows in recent weeks, while Coinbase pricing briefly traded at a discount compared with USDT-based exchanges — often viewed as a sign of weaker US investor demand.
Futures Traders Drive the Recovery
For now, Bitcoin’s latest recovery appears to be fueled primarily by leveraged futures traders rather than strong spot market buying.
Also Read: Bitcoin Whales Go All-In Again as BTC Eyes $80K Breakout
Open interest has cooled slightly after recent volatility, suggesting speculative positioning is becoming more controlled instead of overheated. Funding rates remain moderately positive, showing traders still lean bullish in the short term.
While a decisive rally to $82,000 is not guaranteed, Bitcoin bulls are gradually regaining confidence. If BTC breaks above $80,000, the market could quickly shift as billions in short positions come under pressure.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
