Bitcoin extended its advance on Aug. 21, rising from an overnight low of about $68,900 to as high as $73,990, a near two-month high, after the U.S. Treasury announced a larger long-dated bond buyback program and a short squeeze rippled through crypto derivatives. Ether climbed at the same time and held above $2,340, while the broader crypto market cap expanded with risk appetite improving.
$960 million liquidated in 24 hours, mostly shorts
With BTC up more than 6% on the day, the derivatives market saw heavy liquidations. CoinGlass data showed total liquidations across the crypto market reached $960 million over the past 24 hours. Of that amount, $788 million came from short positions and $171 million from longs, with 121,000 traders liquidated.
The largest single liquidation order was a $25.13 million BTC-USD contract on Hyperliquid.
Macro catalyst came from Treasury buybacks and stronger U.S. equities
The report said the main catalyst behind the rally came from the macro side. The U.S. Treasury said it would at least double the scale of its long-term bond buybacks, easing pressure from yields and helping lift risk assets.
U.S. stocks also closed higher on Aug. 20. The S&P 500 rose 0.8% to 5,847.32, the Nasdaq gained 1.2% to 19,284.67, and the Dow Jones Industrial Average added 0.5% to 38,914.28. Crypto and equities moved higher together in the short term.
Major tokens moved up across the board
Bitcoin was trading at $73,685 as of 08-21 08:58, up 6.04% over 24 hours and marking a fresh 14-day high, well above its 14-day low of $62,553.
Ether traded at $2,340, up 3.36%, and also touched a more than 14-day high at 08-21 01:00. XRP led major tokens with a gain of more than 14%, trading at $1.2648 after reaching a high of $1.3441. Solana rose 3.62% to $88.18.
Technical indicators put BTC and ETH in overbought territory
On the daily chart, Bitcoin closed at $73,025 on Aug. 20 UTC. Its 14-day RSI stood at 80.3, placing it in overbought territory. The moving average structure remained bullish, with the close above the SMA20 at $64,649, the SMA50 at $64,286, and the SMA200 at $69,015. The MACD histogram widened from the previous day, pointing to stronger momentum.
For Bollinger Bands, Bitcoin closed near the upper band at $69,359, showing higher volatility. Resistance was identified at the 30-day high of $73,400. Support levels, from nearest to furthest, were the Bollinger upper band at $69,359, the SMA200 at $69,015, and the SMA20 at $64,649.
Ether closed at $2,327, with its 14-day RSI at 84.4, also in overbought territory. Its moving averages all sat below the closing price, keeping the bullish alignment intact, while MACD momentum strengthened as well. Ether closed near its Bollinger upper band at $2,174. Resistance stood at the 30-day high of $2,360, with support at $2,174, $2,005, and $1,929.
Fear and Greed Index rebounds to 72
Market sentiment improved alongside the price move. The Crypto Fear and Greed Index came in at 72 on Aug. 21, up from 62 a day earlier. The report also noted that the gauge had dropped as low as 29 within the previous eight days.