Bitcoin has returned to the $80,000 at the same level for the first time since February, marking a steady recovery after the previous sharp correction.
At the time of writing, BTC was trading around $80,000, having almost made a gain 2% on the dayas price action continued to build higher lows following the February decline.
BTC’s trend changes as the price forms higher lows
After a close-range fall $95,000 down $60.000 inches FebruaryBitcoin entered a consolidation phase through March.
The final chart shows a gradual recovery structure, with BTC consistently forming higher lows in April and early May.
This pattern has now pushed the price back into the market $80,000 zone, a key psychological level that previously acted as support before the February collapse.
The relative strength index [RSI] climbed around 65indicating strengthening momentum without entering overbought territory.
Short liquidations create upward momentum
Derivatives data shows that a wave of short liquidations has supported the latest rise.
On May 4 alone, totally short liquidations approximately reached $186 millioncompared to round $56 million in long liquidationS.
This imbalance suggests that bearish positions were forced to close as the price moved higher, accelerating the upward movement.
Such liquidation-induced rallies often create short-term momentum, especially when prices break above key resistance zones.
$80,000 remains an important level to watch
Despite the recovery, Bitcoin has not yet confirmed a complete trend reversal.
The $80,000 zone now acts as a critical level as it previously served as support before turning into resistance during the previous decline.
Sustained move above this level could open the door for a retest of higher ranges, while rejection could mean continued consolidation.
Final summary
- Bitcoin has returned to the $80,000 level for the first time since February, following a steady recovery from the earlier decline.
- This move is partly due to short liquidations, which highlight a shift in market positioning rather than a confirmed breakout.