Bitcoin Reclaims $86K as Crypto Rally Cools
Bitcoin rebounded from $80,850 to a high near $87,395 before later trading around $86,578, up 2.1% over 24 hours. Ethereum rose 1.27% to $2,728, while XRP gained 2.28% and Solana increased 0.83%. The broader Bitcoin-led crypto rally lifted the Fear and Greed Index from 65 to 70, keeping sentiment in the “Greed” zone for an eighth consecutive day, although this was below the earlier reading of 78.
Liquidation pressure also eased from more than $1.03 billion to $128.7 million over 24 hours. Short positions still dominated, accounting for $103.7 million of liquidations, while more than 41,600 traders were forced out. The largest liquidation was a $5.63 million ETH/USDT position. Earlier, short liquidations had reached $851 million, with a $20.86 million BTC-USD position on Hyperliquid the largest single loss.
Technical signals remain constructive. Bitcoin trades above its 20-, 50- and 200-day moving averages and the Bollinger middle band. Its RSI declined from 73.9 to 68.7, while Ethereum’s RSI stood at 63.9, indicating strong but less overheated momentum. MACD remains bearish on both assets, although its narrowing histogram suggests improving momentum.
Bitcoin faces resistance near $87,396 and $89,356, with support around $82,884 and $79,047. Ethereum resistance is at $2,807 and $2,853, while support is near $2,649 and $2,502. Traders should watch whether Bitcoin can break resistance without triggering another wave of leveraged liquidations. Elevated greed and high leverage could still produce sharp short-term volatility.
Bullish
The direct price impact remains bullish because Bitcoin recovered above $86,000, trades above its 20-, 50- and 200-day moving averages, and continues to lead gains across major cryptocurrencies. Ethereum, XRP and Solana also remain in positive territory. The decline in Bitcoin’s RSI from 73.9 to 68.7 and the reduction in total liquidations suggest that the market is less overheated than during the earlier surge.
In the short term, resistance near $87,396 and $89,356 could limit further gains. A failure to break these levels may trigger profit-taking, particularly while sentiment remains in the greed zone and leverage is elevated. The still-bearish MACD readings also leave room for a pullback, despite narrowing histograms.
Over a longer horizon, sustained trading above major moving averages would support the bullish trend and could attract additional momentum traders. However, the earlier $1.03 billion liquidation event shows how quickly crowded positions can destabilise prices. The outlook is therefore bullish, but with a significant risk of sharp, leveraged volatility.