Bitcoin Surges Above $81K, Sets Sights on Crucial $85K Level
Bitcoin has reclaimed its bullish territory after breaking above $81,300 on Monday. The cryptocurrency's recovery comes as it extended its gains from last week, rising more than 5%. Ethereum and XRP also saw significant increases, with Ethereum gaining over 6% to move above $2,600.
Momentum indicators across the three cryptocurrencies suggest a bullish shift, indicating that buyers may attempt to push prices higher in the near term. Glassnode notes that Bitcoin's recovery above the True Market Mean level is a return to bullish territory and signals that recent buyers are holding unrealized profits.
According to Glassnode, the next major overhead for Bitcoin is the corporate treasury cost basis around $80,421, which it has already reclaimed. However, the cryptocurrency still faces resistance from the US spot exchange-traded fund investors' cost basis at approximately $85,638.
The accumulation of leveraged short positions in the region between $83,000 and $86,000 increases the potential for a short squeeze if Bitcoin reaches this zone. Glassnode's leverage data suggests that the wider cryptocurrency market may still have room to extend its recovery.