Bitcoin's $80K Breakout Hinges on Sustained Spot Demand

Bitcoin's rapid ascent to nearly $80,000 has analysts eager to see sustained spot demand replace forced buying. The asset climbed almost 24% in one week, with U.S. spot ETF inflows and short covering fueling its strongest weekly advance since March 2023.

Nicolai Søndergaard, senior research analyst at Nansen, said continued spot demand must replace forced buying for Bitcoin to hold above $80,000. He noted that selling pressure has eased, some whales have resumed selective accumulation, and ETF flows have improved, but recent readings still showed weak U.S. spot demand.

Lacie Zhang, Bitget Wallet research analyst, attributed part of the rally's speed to traders buying Bitcoin to close leveraged bearish positions. She said the market's next test will arrive after forced covering loses momentum, and ETF buyers must continue absorbing available supply for the rally to sustain above $80K.

Analysts also pointed to a combination of spot buying and short covering rather than a rally built mainly on new leveraged longs. A confirmed breakout could bring $85,000, $90,000 into view, while rejection may trigger another correction.