Bitcoin Holds $80K as Liquidations Reach $231M
Bitcoin held above $80,000 at $80,123, up 0.27% in 24 hours, while Ethereum reclaimed $2,500 at $2,511, gaining 0.83%. Bitcoin also remains above its 20-day Bollinger middle band and key moving averages, although its MACD shows strengthening bearish momentum. Bitcoin resistance stands near $82,300 and $84,972, with support around $77,263.
Crypto derivatives liquidations reached $231 million over 24 hours. Short positions accounted for about $150 million, or 65% of the total, as the rebound triggered short squeezes. More than 70,000 traders were liquidated, including a $3.06 million ETHUSDT liquidation on Binance.
The US August non-farm payrolls report added 162,000 jobs, well above the 53,000 expected. The data pushed the implied September Fed rate-hike probability above 60%, lifting the US dollar and Treasury yields and limiting appetite for risk assets. Solana rose 2.61% to $106.04, while XRP gained 0.20% to $1.417.
The Crypto Fear and Greed Index eased to 71 from 73 but remained in the greed zone. Traders are likely to monitor upcoming CPI and PPI data. Persistent inflation could strengthen rate-hike expectations and pressure Bitcoin, while a softer inflation reading could support a move towards resistance.
Neutral
The market impact is neutral because bullish and bearish signals are offsetting each other. Bitcoin is holding the psychologically important $80,000 level, remains above its 20-day moving average and Bollinger middle band, and short liquidations dominated the latest volatility. These factors suggest underlying demand and the possibility of a short-term squeeze toward $82,300 or higher.
However, the stronger-than-expected US non-farm payrolls report has increased expectations of a Federal Reserve rate hike. Higher Treasury yields and a stronger US dollar typically reduce liquidity available for Bitcoin and other risk assets. Bitcoin’s MACD is also showing stronger bearish momentum, while the Fear and Greed Index has cooled despite remaining in greed territory.
Similar post-employment-data episodes have often produced sharp two-way moves rather than a sustained trend. In the short term, traders may see elevated volatility around $80,000, with a break above $82,300 potentially targeting $84,972. A move below the $77,263 support could expose Bitcoin to deeper losses. Ethereum has a comparable setup, with support near $2,420 and resistance around $2,567. Over the longer term, the direction will depend more heavily on CPI, PPI, Fed policy and broader dollar liquidity than on the liquidation event itself.