BTC Targets $80K Liquidity Hunt as ETFs Fuel Buying Surge
Bitcoin surged to the $70,000 mark during Wednesday’s trading session in New York, with bullish momentum clearly aiming to capture available sell-side liquidity.
Essential insights:
- The BTC price must maintain support above a crucial trendline around $68,000 to sustain this ongoing rebound.
- Traders should closely monitor the $80,000 level, as it represents the next significant cluster of liquidations higher up.
- Spot Bitcoin exchange-traded funds (ETFs) drew in approximately $500 million in fresh capital on Wednesday alone.
Bitcoin Requires Weekly Close Above $68,000 for Continued Strength
According to data from TradingView, the BTC/USD trading pair was quoted at $68,480 on the Bitstamp exchange. This position sits just above the 200-week exponential moving average (EMA), which stands at $68,338 at present.
Market analyst Rekt Capital identified that Bitcoin is encountering resistance from this key trendline. He explained that the current recovery phase might evolve into a classic post-breakdown retest of the EMA, now acting as fresh resistance, drawing from patterns observed in past price behaviors.
Rekt Capital emphasized, “The moment of truth is coming for Bitcoin,” and further noted: “Bitcoin will need a Weekly Close back above the EMA and flip it into new support to go against the grain of history.”
Taking a closer look at shorter timeframes, another analyst named Jelle pointed out that for the recovery to gain confirmation, the price action must successfully transform the 50 EMA—positioned at $68,000—on the four-hour chart into reliable support.
As previously detailed in market analysis, should bullish forces break through the 20-day EMA—currently located at $69,220—the BTC/USD pair could potentially climb toward $74,508. At that point, it is anticipated that sellers would intensify their activity to defend higher levels.
Could Liquidations Propel Bitcoin Price Toward $80,000?
A number of traders are now eyeing a potential liquidity grab scenario, where a dense concentration of ask orders has accumulated above the $72,000 threshold.
Recent figures from the monitoring platform CoinGlass indicate that Bitcoin’s price has already probed liquidity zones near $70,000. However, the majority of liquidation interest remains positioned above the current spot price levels.
Roughly $2 billion worth of ask orders are stacked between $72,450 and $75,000, creating a substantial barrier for upward movement.
A decisive break above $75,000 could trigger a powerful liquidation cascade, compelling short sellers to exit their positions en masse. This chain reaction might propel prices directly toward $80,000, home to the subsequent major liquidity concentration.
Analyst AlphaBTC commented in a recent social media update, “Bitcoin’s liquidity hunt has only just started.” He continued, “Unless there is a catalyst to drop, I am expecting these higher levels to get run in the next few weeks.”
Spot Bitcoin ETF Inflows Bolster Bitcoin’s Bullish Outlook
Signs of renewed institutional interest are emerging, as United States spot Bitcoin ETFs have logged positive inflows over two straight days, per figures from Farside Investors.
On Tuesday and Wednesday combined, investors committed a hefty $765 million to these vehicles. Notably, Wednesday’s inflow reached $507 million—the strongest single-day figure since February 2.
An X user known as Raster observed, “ETF inflows and short liquidations doing the heavy lifting.” He elaborated, “This isn’t retail FOMO, it’s institutional accumulation with a technical breakout.”
This mounting demand from institutional players could exert significant upward pressure on BTC prices. The effect would likely be amplified if paired with expanding adoption trends and ongoing accumulation by large-scale holders, or whales.
