Bitcoin Breaks Above $79,000: $375M in Short Liquidations as Market Eyes Critical $80K Level

Bitcoin gained 4.7% over the past 24 hours, climbing to approximately $79,300 — its highest price since late January. Short position liquidations accounted for $375 million out of a total $480.3 million liquidated across the crypto market. Analysts remain divided on whether this move represents a sustainable trend reversal or a tactical bounce vulnerable to selling pressure at $80,000.

Altcoins Rally Alongside BTC; Macro Backdrop Improves

Major altcoins followed bitcoin's lead. Ethereum rose 4.4% to $2,400, BNB added nearly 2.9% to ~$650, and Solana climbed 2.7% to ~$88.

The macroeconomic backdrop turned supportive as the S&P 500 gained 0.8% and the Nasdaq rose 1.3%, hitting a record high. The equity rally followed reports from the NYP citing sources that President Donald Trump is willing to give Iran up to five days of ceasefire to prepare for negotiations, with the next meeting potentially taking place on April 24. However, Tehran has not yet made a final decision, according to the Tasnim news agency. Uncertainty persists in the Middle East — the U.S. maintains its blockade and the Strait of Hormuz remains closed.

QCP Capital: Rally Looks Fragile, No Trend Reversal

QCP Capital analysts view the bitcoin rally as temporary and do not expect a broader trend shift. They noted that risk assets are firmer only due to the extended ceasefire and the stance of Fed chair nominee Kevin Warsh, who confirmed full independence of the institution.

Oil prices remain around $100, with markets shifting from pricing shock risk to assessing sustainability. This fuels inflation while simultaneously weighing on real incomes and consumption, creating headwinds for growth, according to QCP.

The firm highlighted that negative funding rates point to growing short positioning. While this makes the market tactically vulnerable to short squeezes, it does not signal a decisive sentiment shift. The options market offers no confirmation of a confident breakout either — short-term volatility remains subdued and downside protection continues to see demand. Derivatives suggest consolidation rather than trend development, with institutional players showing no decisive conviction, QCP concluded.

K33 Research: Short Squeeze Potential Building

K33 Research head of research Vetle Lunde takes a more optimistic view. He pointed to a divergence between bitcoin's price and funding rates — BTC is trending higher while funding continues to decline, with 7-day rates matching February lows even as open interest rises.

«Bitcoin prices and funding rates are diverging. While BTC trends higher, funding continues to fall, with 7-day rates on par with February lows alongside rising open interest. This setup increases the likelihood and potential magnitude of a short squeeze.» — K33 Research (@K33Research), original post

According to Lunde, BTC still has strong breakout potential, with concentrated short positions providing ample fuel for upward momentum.

Why This Matters

The $79,000–$80,000 zone represents a critical battleground for bitcoin's near-term trajectory. It coincides with the realized price of short-term holders — the investor cohort most sensitive to volatility and most likely to sell as prices approach their cost basis.

CryptoQuant analyst Ignacio Moreno de Vicente called $80,000 a "critical inflection point."

«The $80K Liquidity Wall: Billions in Losses Are About to Make a Decision: Bitcoin is approaching a critical inflection point where two of the most influential marginal buyer cohorts (ETF investors and short-term whales) are simultaneously testing their cost basis.» — I. Moreno (@MorenoDV_), original post

Moreno de Vicente noted that the realized price of short-term whales (holders of one to six months) sits at $79,600. This group has been underwater since November 1, with current unrealized losses at $4.3 billion and a 30-day average of $9.4 billion.

He recalled that on January 15, when bitcoin approached $95,000, short-term whales who had briefly returned to profit used that window to exit. For these investors, $80,000 is not merely a round number — it is a psychological and financial threshold between relief and continued losses.

A sustained break above $80,000 could flip resistance into support. A rejection, on the other hand, would confirm overhead supply pressure and could extend the drawdown into the second quarter, Moreno de Vicente warned.

Previously, MN Trading founder Michaël van de Poppe suggested bitcoin could reach $100,000 within 12 months.