BTC Surges Above $84K as Bulls Eye Breakout; SOL, LINK Lead the Rally

Bitcoin Reclaims Key Level as Markets Rebound

Risk assets staged a strong recovery on Friday, with Bitcoin (BTC) surging past its 200-day moving average, a critical indicator of long-term market trends.

Crypto and Stocks Rally as Sellers Step Back

Bitcoin briefly hit $85,000 before settling at $84,400, posting a 4.7% gain in the past 24 hours. The rally extended across the broader crypto market, with Solana (SOL), Chainlink (LINK), and SUI leading gains in the CoinDesk 20 Index.

Traditional markets also saw renewed optimism, as the S&P 500 climbed 1.7% and the Nasdaq rose 2.3%. Meanwhile, gold retreated below $3,000, following its record-breaking run earlier in the week.

Liquidation Flush Strengthens Market Foundation

Over the past week, $2.6 billion in leveraged crypto positions—mostly longs—were liquidated, clearing excess leverage from the market, according to Paul Howard, senior director at Wincent.

“This rebound is driven by a combination of improving macro conditions and signs that crypto is forming a more stable base after recent pullbacks,” Howard explained.

200-Day Moving Average: A Decisive Battle for BTC

A key technical milestone, BTC’s move back above the 200-day moving average at $83,767, signals renewed bullish momentum. Closing above this level would reinforce optimism, while a failure to hold could indicate further downside.

Cross-asset trader Bob Loukas suggested that Bitcoin and stocks may have more room to recover. “It feels like we’re nearing the end of panic selling. We could see a few weeks of upside before the market reassesses,” he noted.

As BTC consolidates above key support, traders are closely watching for confirmation of a sustainable rally or a potential reversal.