Bitcoin Faces Crucial Test at $80,000 as Rally Continues Unabated

Bitcoin has been on a tear this week, surging to as high as $79,400 on Friday. The rally kicked off by the U.S. Treasury's bond buyback announcement on Wednesday continues to gain steam, adding almost 24% since Monday morning and making it the strongest weekly advance since March 2023.

Despite its gains, Bitcoin still faces a test at $80,000. The relative strength index (RSI) is in overbought territory, indicating that traders who bought the break of the inverse head-and-shoulders pattern may be due for a short-term pullback.

The Dollar Index has fallen to 98.77, while Nasdaq 100 futures are up 0.43%. Derivatives positioning shows that shorts account for $1.06 billion of positions against $178 million in longs, with 152,586 traders liquidated over the past 24 hours.