• Bitcoin briefly topped the $80,000 mark on Monday, the highest level in three months, liquidating $138 million in shorts.
• Crypto sentiment improves, with inflows into US-listed spot ETFs totaling $154 million last week.
• Around $59 million in token unlocks are expected this week, which could heighten market volatility.

Bitcoin (BTC) is trading near $80,000 at the time of writing on Monday, after pulling back from a three-month high at $80,635. The crypto market is generally bullish, with major altcoins such as Ethereum (ETH) and Ripple (XRP) posting modest daily gains.

Strengthening market sentiment is driving a more bullish outlook, as evidenced by increased capital inflows into digital asset investment products.

Bitcoin rebounds amid easing selling pressure

Crypto market sentiment edges higher, with the Fear & Greed Index holding at 47 as of writing on Monday, up sharply from 29 the previous day. While the index remains in the fear zone, this level represents a substantial increase from last month’s average of 11, which is extreme fear territory.

A steady increase in the index would strengthen the crypto market’s recovery outlook, raising the odds of Bitcoin reclaiming support above $80,000 and grinding toward $90,000.

Bitcoin spot Exchange-Traded Funds (ETFs) marked five consecutive weeks of inflows with $154 million recorded through Friday. Although a markdown from the previous week’s $824 million in capital inflows, the data show a steady appetite for risk assets despite the geopolitical uncertainty surrounding the United States (US)-Iran conflict.

Cumulative inflows now stand at $58.72 billion, with net assets under management averaging $103.78 billion. The demand for spot ETFs aligns with the rising sentiment in the crypto market.

Bitcoin’s surge above $80,000 triggered liquidations, with short position holders losing roughly $138 million on Monday. In contrast, nearly $46 million in long positions has been liquidated. Reclaiming $80,000 as support could boost investor conviction and expand BTC’s recovery potential.

Chart of the week: Bitcoin poised to extend gains above $80,000

Bitcoin trades at $79,772, consolidating in a neutral, range-bound structure after rebounding from its 200-week Exponential Moving Average (EMA) near $68,062. The Crypto King now sits above this long-term EMA support but remains below the 100-week EMA at $82,352 and the 50-week EMA at $85,777, which together hint at a still-capped broader trend despite improving tone.

The Relative Strength Index (RSI) at 48 on the weekly chart stays close to the midline, while the Moving Average Convergence Divergence (MACD) histogram holds in positive territory, suggesting recovering but not yet dominant bullish momentum as the market digests prior losses.

On the downside, initial support lies at the 200-week EMA around $68,061, with a deeper floor emerging near the prior descending trendline break level at $65,981 if sellers regain control. On the topside, immediate resistance is seen at the 100-week EMA at $82,352, followed by a stronger supply zone at the 50-week EMA near $85,777. A sustained weekly close above this upper band would be needed to tilt the medium-term bias more convincingly back in favor of the bulls.

Upcoming $59 million token unlocks signal potential volatility

Several token unlock events, totaling $59 million, are expected this week, led by Canton’s $22.61 million, Tangible’s $2.93 million and Chelee’s $2.77 million on Monday.

Other notable releases include Stepn’s roughly $539,000 on on Friday and Stable’s $29.33 million on Saturday. Cumulative unlocks total $59 million, which could trigger volatility, particularly for the concerned tokens.

Token unlocks are considered scheduled supply shocks, which can result in higher volatility. Anticipatory selling can occur before the events. However, the exact impact of the unlocks is nuanced, with instances of pricing in effects.

(The technical analysis of this story was written with the help of an AI tool.)