Bitcoin nears $80,000 as short squeeze fuels rally to May high

Bitcoin climbed toward $80,000 on Friday, August 21, reaching its highest valuation since May as a short squeeze cleared bearish leverage.

Bitcoin rose 8.6 percent to $75,401 on Friday, August 21, nearing the $80,000 mark and reaching its highest price since May 2026.

Glassnode data showed the daily close marked a 5.8-sigma move against Bitcoin's 30-day volatility, the largest upside move of that magnitude since October 2023.

Bitcoin climbed from roughly $63,000 to $75,401 in under 48 hours after buyers defended the $63,000 area, forming a higher high and higher low. The rally accelerated as $1.4 billion to $1.7 billion in crypto short positions were liquidated across exchanges, clearing bearish leverage. Ethereum rose 5.1 percent to $2,360 over the same stretch.

Analyst Pierre Rochard expects Bitcoin to end 2026 near $80,000, break above $120,000 next year and reach $300,000 by 2030, contingent on Federal Reserve rate cuts and improved liquidity. Polymarket odds of Bitcoin reaching $80,000 in August rose to 13 percent.

$80,000 Becomes the Near-Term Milestone

On-chain analyst Onchain Insights said Bitcoin has broken above its yearly downtrend resistance and recovered into the $70,000 range. A sustained close above this structural resistance could point to weakening selling pressure and further upside momentum.

Trader @samuwl_ identified $72,501 as the next critical level, with a daily close above it potentially triggering another short squeeze. Whale sell walls sit at $74,000 and $80,000, with limited short-position resistance before the $80,000 mark, according to analyst CW.

Bitcoin also reclaimed its 200-day exponential moving average for the first time since November, a move TradingView analyst DaCryptologist said could signal a trend break with $80,000 as a potential test area. The $67,200 point of control on the daily volume profile and the $73,350 anchor band are additional levels to watch.

Can Bitcoin Reclaim $120,000?

Rochard expects Bitcoin to easily surpass $120,000 next year if the macro environment turns supportive, with his long-term target of $300,000 by 2030 reflecting a broader thesis around liquidity, supply and adoption. He argues that if the economy softens enough for the Federal Reserve to cut interest rates without reigniting inflation, Bitcoin would benefit from improved liquidity. He also sees artificial intelligence boosting productivity and lowering inflation, which could create a stronger environment for risk assets.

SkyBridge Capital Chief Executive Anthony Scaramucci expects Bitcoin to surpass $100,000, citing the halving cycle and its reduction in new supply.

Momentum indicators show the market is stretched. Bitcoin's relative strength index stood at 78, with Stochastic %K at 87 and the commodity channel index at 369, according to TradingView data. The $70,993 level is important on the downside, as a sustained move below it could pressure leveraged long positions.

Whether Bitcoin can convert this leverage-driven surge into sustained spot demand will determine how realistic the $80,000, $120,000 and $300,000 targets become. A daily close above $72,501, followed by sustained trading above $73,350, would strengthen the case for continued upside, while failure to hold $70,993 raises the risk of a pullback.

This article is for informational purposes only and does not constitute investment advice.