Bitcoin climbed back above the $81,000 mark and touched an intraday high of $81,714, its strongest level in months. Although the market saw brief pullbacks during the session, bulls managed to defend support above $80,500, helping the asset deliver a weekly gain of nearly 7% and reinforcing the view that buying interest remains intact.
Support Holds After Break Above $81,000
According to the source material, Bitcoin first broke through $81,000 on May 5 before briefly retracing. The decline proved short-lived, as the price stabilized just above $80,500 and resumed its advance later in the day. Even after two sharp drops followed by rapid recoveries, sellers failed to force a deeper reversal, and Bitcoin returned above $81,500. At the time cited in the report, the cryptocurrency was up about 1.6% over 24 hours.
The rally pushed Bitcoin’s market capitalization to $1.63 trillion and helped lift the total crypto market value to $2.77 trillion. The move underscores Bitcoin’s continued role as the main driver of broader crypto market sentiment.
Geopolitical Relief Supports Risk Appetite
The advance came as markets reacted to signs of easing tensions in the Middle East. The report said the Trump administration downplayed clashes in the Strait of Hormuz and emphasized that a ceasefire remained “fully in effect.” That message appears to have reassured institutional investors that Washington was not seeking a wider regional conflict, reducing immediate risk-off pressure across global markets.
The shift in sentiment was also visible in energy markets. Oil prices had initially jumped 5% after reports of targeted attacks on a terminal in the Fujairah oil zone in the UAE, but later gave back part of those gains. Brent crude fell to $109 per barrel, while WTI dropped to $102 per barrel, according to the report. Softer oil prices helped ease fears of a broader supply shock and renewed inflation pressure.
Short Liquidations Add Fuel to the Rally
Bitcoin’s sharp move higher inflicted heavy losses on bearish traders. The article stated that over the previous 24 hours, about $123 million in short positions were liquidated, compared with roughly $9 million in long liquidations. Across the broader market, total short liquidations exceeded $202 million, versus $57 million for longs.
That imbalance suggests the breakout above key price levels triggered additional short covering, amplifying upward momentum through a classic short squeeze. Taken together, cooling geopolitical fears, improved market sentiment, and forced liquidation of short positions allowed Bitcoin to defend the $80,500 zone, a level that traders are likely to watch closely in the sessions ahead.