Bitcoin trades above $80,000 as short squeeze unfolds

Bitcoin rose 5.88% to $80,846 during the trading session. Bitcoin opened at $76,355 and reached an intraday high of $80,857. Bitcoin reached an intraday low of $76,236. Short positions worth more than $445 million were liquidated across the crypto market. Bitcoin accounted for $230 million of those liquidations. Forced buying during liquidations can push prices higher and create a short squeeze. The Federal Reserve raised interest rates by 25 basis points on Wednesday. The increase was the Fed's first rate hike since 2023. The Fed's dot plot projected a median policy rate of 4.1% through the end of 2027. The failure of the Clarity Act to clear a Senate procedural vote had pushed Bitcoin below $75,000 earlier in the week. Bitcoin remained nearly 20% below its previous all-time high. Bitcoin's Average Directional Index stood at 40.6. Traders use 25 as a threshold for confirming a trend. Bitcoin's positive directional line was above its negative directional line. Bitcoin's 50-day exponential moving average was above its 200-day exponential moving average. Bitcoin entered a golden cross last Saturday. Its Relative Strength Index stood at 63.3. The RSI remained below the danger zone above 70. The Squeeze Momentum Indicator had stayed on for 11 consecutive bars. Its contraction reading was 8.06%. Immediate resistance stood at $82,281. Support levels stood at $75,569 and $68,858. The technical setup favored near-term continuation but left little room for another 6% day without a cooling-off period.