BTC Nears Crucial $84K Level Amid Bullish Momentum; SOL, LINK Soar

Bitcoin Rallies Above $84K as Bulls Fight to Reclaim Momentum

Risk assets surged on Friday, with Bitcoin (BTC) bouncing back above its 200-day moving average, a critical indicator for long-term price trends.

Crypto and Stocks Post Strong Gains

After a sluggish start to the week, Bitcoin briefly touched $85,000 before settling at $84,400, recording a 4.7% gain over the past 24 hours. Other major cryptocurrencies also saw strong recoveries, with Solana (SOL), Chainlink (LINK), and SUI leading the way in the CoinDesk 20 Index.

Traditional markets followed suit, as the S&P 500 climbed 1.7% and the Nasdaq gained 2.3%. Meanwhile, gold, which had surged past $3,000 earlier, dipped below the mark, signaling a shift in market sentiment.

Liquidations Reset the Playing Field

Over the past week, $2.6 billion in leveraged crypto positions—mostly longs—were liquidated, allowing the market to reset with less excess leverage, noted Paul Howard, senior director at Wincent.

“The recent drawdowns have helped flush out overleveraged positions, setting up a healthier market structure for potential upside,” Howard said.

200-Day Moving Average: A Key Battleground for Bitcoin

A major technical milestone in this recovery was Bitcoin reclaiming its 200-day moving average at $83,767. Historically, this level serves as a crucial support in bull markets and a warning sign when lost.

Veteran trader Bob Loukas believes there is still room for further gains: “The panic selling phase appears to be winding down. We could see a few weeks of recovery before the market re-evaluates its next move.”

As Bitcoin consolidates at this key level, traders are watching to see if bulls can sustain the breakout—or if another correction is on the horizon.

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