Bitcoin Surges Past $84K as Markets Rebound; Key Technical Level in Focus

Risk assets saw a strong resurgence on Friday, with Bitcoin (BTC) rallying above $84,000, reclaiming an important technical threshold.

Crypto and Equities See Broad Gains

After a sluggish week, Bitcoin touched $85,000 before settling at $84,400, marking a 4.7% increase over the past 24 hours. Leading altcoins also saw impressive gains, with Solana (SOL), Chainlink (LINK), and SUI outperforming in the CoinDesk 20 Index.

Traditional markets mirrored crypto’s strength, as the S&P 500 climbed 1.7% and the Nasdaq rose 2.3%. Meanwhile, gold, which had recently broken above $3,000, dipped back below the milestone, reflecting a shift in risk appetite.

Liquidations Reset the Market for a Potential Upside

Over $2.6 billion in leveraged crypto positions were liquidated over the past week—primarily longs—leading to a market flush that eliminated excess leverage, according to Paul Howard, senior director at Wincent.

“This move higher comes as risk assets stabilize following concerns over inflation and tariffs,” Howard said. “With a more balanced market, crypto may be setting up for a stronger foundation.”

Bitcoin Battles the 200-Day Moving Average

A major technical milestone in Friday’s rally was BTC’s reclaiming of the 200-day moving average, currently at $83,767. This level often serves as a key trend indicator—a sustained close above it could validate a bullish recovery, while rejection may signal a deeper correction.

Veteran trader Bob Loukas noted that both Bitcoin and equities could see further upside from here. “We’re likely nearing the end of panic selling. A recovery phase seems likely before the market reassesses,” he commented.

With BTC now at a critical juncture, traders are closely watching whether bulls can maintain momentum or if another pullback is on the horizon.