Bitcoin Volatility Returns as Price Tests Critical Indicator Level

• More than $400 million was liquidated in the cryptocurrency market in only 24 hours, according to data from CoinGlass.
• With a 40% increase from its February lows, Bitcoin’s (BTC) price has returned to a crucial resistance zone.

As a result of global events, Bitcoin saw traditional end-of-week volatility, with a price that momentarily surpassed $82,000. Unfortunately, the increase was short-lived, according to CMC data, as BTC/USD swiftly dropped back around the $80,000 level.

As a consequence, liquidity grabs occurred, which balanced out the long and short positions in bitcoin on the order books of exchanges. More than $400 million was liquidated in the cryptocurrency market in only 24 hours, according to data from CoinGlass. However, the price made a moderate comeback by climbing above the $81K mark.

Approaching the Critical 200 EMA

With a 40% increase from its February lows, Bitcoin’s (BTC) price has returned to a crucial resistance zone, the outcome of which may decide the continuation or conclusion of the bear market. On Monday, the price of BTC fell 2.25 percent at $80,500, wiping out any gains made the previous night as buyers were unable to break above the 200-day exponential moving average.

Since November 2025, Bitcoin’s efforts at a comeback have been limited at this level. The average fall is close to 30%, with 25% and 36% of sharp draws preceding each rejection from the 200-day EMA. Breaking over the 200-day exponential moving average (EMA), which is now above $82,580, might signal “the end of the bears,” according to analyst Brett’s Monday post. The continued decline in Bitcoin’s value suggests, however, that greater losses in the next sessions are more likely.

Bitcoin’s price has the potential to decline to $56,600 from its present levels if it follows its typical 30% decline from the rejection zone of the 200-day exponential moving average. As a result of improving sentiment around US crypto legislation, cryptocurrency investment products recorded a sixth consecutive week of inflows totaling $4.9 billion. This is the longest streak since April to July 2025.

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