Bitcoin Price Rises to $80k on Force Buying, Oversold Rebound
Bitcoin (BTC) price inched up 2.96% to $80,085.58 in 24h, outperforming a broadly positive market, primarily driven by a short-squeeze rebound as election uncertainty cleared.
The price moved on short covering and a leveraged squeeze, as a sharp drop to $75,618 triggered over $399 million in BTC liquidations, forcing bears to buy back.
Bitcoin’s price plunged to a six-week low near $75,600 amid election night volatility, liquidating over $399 million in positions within 24 hours.
Short traders then amplified the rebound by closing positions, creating a classic squeeze. Bitfinex analysts noted the bounce was “driven mainly by short covering, not fresh spot buying.”
The violent move washed out excessive leverage, providing a cleaner base for the rally. However, sustained gains require new spot or ETF demand.
The sell-off found firm support at the 78.6% Fibonacci retracement level of $78,497.21, a common reversal zone.
Concurrently, the market absorbed the U.S. midterm election outcome—a Democratic sweep—which some analysts viewed as a “sell the rumour, buy the news” event after initial bearish forecasts.
Traders said a technical floor and reduced political uncertainty gave buyers a catalyst to step in. A daily close above the 50% Fibonacci level at $81,580 would confirm bullish momentum.
The immediate path hinges on Bitcoin holding the $78,500–$78,000 support zone. If it does, the next target is the $81,580 resistance.
The critical near-term trigger is the U.S. employment report on November 6, which will influence expectations for Federal Reserve policy. A break below $78,000 could see a retest of the $75,600 swing low.
The trend is attempting to reverse from oversold conditions, but conviction remains fragile without supportive ETF flows. The 24h gain was primarily a technical and derivatives-driven recovery from an oversold plunge, set against a calming macro backdrop.
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