Bitcoin Rebounds Above Key Support as Risk Appetite Returns
The crypto market surged on Friday as risk appetite improved across traditional markets, pushing Bitcoin (BTC) back above its 200-day moving average, a critical long-term support level.
Bitcoin Leads Market Rally, Altcoins Follow
Bitcoin briefly touched $85,000 during U.S. trading hours before settling around $84,400, marking a 4.7% daily gain. The rally extended across the broader crypto market, with Solana (SOL), Chainlink (LINK), and SUI among the top-performing assets in the CoinDesk 20 Index.
Traditional markets also saw renewed bullish momentum, with the S&P 500 rising 1.7% and the Nasdaq gaining 2.3%. Meanwhile, gold retraced below $3,000 after briefly breaking its all-time high on Thursday.
Market Shakeout Clears Excessive Leverage
Paul Howard, senior director at Wincent, noted that $2.6 billion in leveraged crypto positions—primarily longs—were liquidated over the past week, helping stabilize the market.
“This bounce is likely driven by improving macro sentiment around risk assets and signs that crypto is finding a stronger base after recent drawdowns,” Howard commented.
BTC Bulls Defend Key 200-Day Moving Average
Bitcoin’s break back above its 200-day moving average at $83,767 is a crucial technical signal for traders. Holding above this level would indicate renewed bullish strength, while a failure to maintain support could lead to further downside.
Cross-asset trader Bob Loukas believes Bitcoin and equities have more upside in the short term. “The market appears to be exiting panic mode and could spend the next few weeks recovering,” he said. “Then, we reassess.”
Bitcoin’s ability to hold above its 200-day moving average could set the tone for the next phase of the market cycle, with traders watching for confirmation of a sustained recovery or deeper correction.
