BITCOIN MAY BE ONE BREAKOUT AWAY FROM FORCING THE ENTIRE SHORT MARKET TO UNWIND.
Bitcoin has reclaimed $78,000 for the first time since mid-January and is now pushing into one of the most important levels on the chart.
Why this matters:
Funding rates are still negative across major exchanges, which means many traders are still positioned for downside.
At the same time, spot demand is improving and ETF flows have turned positive again after weeks of outflows.
That creates a dangerous setup for shorts.
If real buying continues while the market is leaning bearish, short sellers may be forced to cover into strength, adding even more fuel to the move.
But there is one major level to watch:
$80,000.
Glassnode says this is where many recent buyers return to profit, which historically increases sell pressure as traders look to exit near breakeven.
They also noted short-term holder realized profits just hit $4.4 million per hour, nearly 3x the level that marked prior local tops this year.
So the setup is clear:
Above $78K = momentum improving.
Above $80K = potential squeeze zone.
Failure at $80K = likely resistance and pullback.
Bitcoin is no longer in freefall.
Now the market decides if this is the start of a breakout or just another rally into resistance.
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