Bitcoin Hits $80,000 but Faces Key Resistance

Bitcoin has seen a significant surge in price over the past week, nearing $80,000. This move, however, is not without its challenges as the asset still remains within the same trading range it has been in all year. The resistance level near $80,000 was previously rejected in mid-May, and Bitcoin's price temporarily popped above this level before reversing.

The implied volatility (IV) of Bitcoin skyrocketed to over 48% following last week's big price move higher. This is a reactive move as traders scrambled to buy up options to hedge themselves after the asset's price surge. However, longer-dated volatility rose more modestly, creating an opportunity for patient institutions to take on leverage into the end of the year.

Institutions and larger investors will wait for IV to bleed before building size, making it likely that Bitcoin's price will remain sideways in the near term. The 200-day moving average, currently around $69,000, now represents possible support if momentum cools from here and we see some downside reversion over the coming weeks.