Bitcoin abruptly surges above $82,000

Bitcoin extended its gains on Wednesday morning and traded above $82,000, with BTC at $82,095.3, up 0.70%. The semi-rally came as the rest of the crypto market stayed mixed, with ETH flat at $2,391.73, SOL up 3.95% at $89.11, and XRP higher by 1.44% at $1.4372.

The derivatives market showed heavier activity as total open interest rose 2.24% to $138.75 billion, while total liquidations jumped 70.59% to $535.95 million. The average RSI stood at 60.44, keeping the market in neutral territory, while the Altcoin Season Index was also neutral at 40.

Meanwhile, open interest rose 2.21% to $138.70 billion, 24-hour futures volume increased 15.06% to $227.47 billion, and 24-hour liquidations climbed 69.73% to $533.34 million. Options open interest surged 378.95% to $44.38 billion, while CME BTC open interest rose 1.92% to $9.82 billion.

Bitcoin’s market share eased 0.38% to 60.45%, and Bitcoin exchange balances fell by 528 BTC to 2.45 million BTC. The Fear & Greed Index stood at 45, also in neutral territory.

Bitcoin’s recovery is being helped by pressure on short sellers. As price moved higher, short positions kept building, setting up a squeeze-like backdrop. The 30-day moving average funding rate for BTC is now close to a historic low zone last seen during the sharp selloff in November 2022.

That kind of setup can force bearish traders to close positions, take losses, or get liquidated, which adds buying pressure to the market.

Across major liquidation data, BTC led with $184.72 million wiped out over the past 24 hours, followed by ETH at $72.36 million, ZEC at $63.06 million, SOL at $17.12 million, and TON at $15.59 million.

The wider market also turned more risk-on after a report said the U.S. and Iran were nearing an agreement to end the war. Dow Jones Industrial Average futures rose 409 points, or 0.8%, while S&P 500 futures gained 0.7% and Nasdaq 100 futures climbed 1.1%.

In commodities, West Texas Intermediate futures dropped 10% but still traded above $91 per barrel, while Brent crude fell 9% to around $100. Gold futures rose 2.75% to $4,682.80, while the U.S. Dollar Index slipped 0.51% to 97.807.