Bitcoin Surges Past $84K, Faces Key Resistance; SOL, LINK Lead Gains

The recovery in risk assets pushed BTC beyond its 200-day moving average, a crucial indicator of long-term trends.

Key Takeaways:

• Crypto Rebound: BTC surged to $85,000, with LINK, SOL, and SUI leading gains in the broader market index.
• Traditional Markets Rally: The S&P 500 and Nasdaq rose 1.7% and 2.3%, respectively, as risk appetite returned.
• Gold Pullback: After hitting a record above $3,000, gold retreated.
• Market Outlook: Trader Bob Loukas suggests both stocks and BTC have further upside potential as they recover from oversold conditions.

Sellers of risk assets paused on Friday, allowing crypto markets and U.S. stocks to rally after a sluggish week.

Bitcoin briefly surpassed $85,000 during U.S. trading hours and now sits at $84,400, up 4.7% in the past 24 hours. All cryptocurrencies in the broader market index saw gains, with LINK, SOL, and SUI leading the surge.

The market rebound coincided with renewed risk appetite in traditional markets. The S&P 500 and Nasdaq gained 1.7% and 2.3%, respectively. Meanwhile, gold, which outperformed Bitcoin during recent sell-offs, retreated below $3,000 after briefly surpassing the milestone for the first time in history.

Market Rebound and BTC's Key Test

The recent bounce in crypto markets is likely driven by macroeconomic factors, including inflation and tariff concerns, alongside signs of a more stable foundation for cryptocurrencies following months of declines, according to Paul Howard, senior director at Wincent.

Over the past week, approximately $2.6 billion in leveraged crypto derivatives positions—mostly longs—have been liquidated, helping flush out excessive leverage and leaving the market on a firmer footing.

Can BTC Hold Above Its 200-Day Moving Average?

Today's rally pushed Bitcoin back above its 200-day moving average, a crucial long-term trend indicator. A daily close above the level, currently at $83,767, would strengthen the bullish case, suggesting the worst of the correction may be over. However, if BTC fails to hold above it, the moving average could turn into resistance, signaling the potential for further downside.

Bitcoin price and its 200-day moving average (TradingView)

Experienced cross-asset trader Bob Loukas believes both Bitcoin and stocks have further upside potential in the near term as they recover from oversold conditions.

“We should be close to the end of panic, at least for now, and spend a few weeks rebounding,” Loukas said earlier this week. “Then the market reassesses.”