Bitcoin, Ethereum and XRP extended their recoveries on Monday after recording strong gains during the previous week.
Bitcoin traded above $81,300 after rising more than 5% last week. Ethereum gained over 6% during the same period and moved above $2,600, while XRP held above the key $1.40 level following a weekly advance of more than 5%.
Momentum indicators across the three cryptocurrencies point to an early bullish shift, suggesting buyers may attempt to push prices higher in the near term.
The rally above $81,000 means that Bitcoin has now reclaimed the True Market Mean, an onchain development suggesting that the cryptocurrency may have returned to a bullish market regime.
The True Market Mean, currently estimated at $76,660, reflects the average acquisition price of actively trading market participants.
Movements above the metric can signal that recent buyers are collectively holding unrealized profits, potentially strengthening short-term sentiment.
Corporate and ETF cost bases create new tests
In its recent report, Glassnode noted that Bitcoin’s recovery above the True Market Mean level was a return to bullish territory.
After clearing this level, Bitcoin’s next potential obstacles are the average purchase prices of corporate treasury holders and US spot exchange-traded fund investors.
Glassnode estimated the corporate treasury cost basis at approximately $80,421. Bitcoin’s move above $81,000 means the cryptocurrency has also reclaimed that level, potentially returning the average corporate buyer to profit.
The cost basis for US spot Bitcoin ETF investors sits higher at around $85,638. These metrics represent the average prices paid by two influential categories of Bitcoin holders.
As BTC approaches their acquisition levels, investors who previously accumulated at higher prices could choose to sell near break-even, creating additional resistance.
Bitcoin is approaching a dense cluster of potential short liquidations between $83,000 and $86,000, according to Glassnode.
The region has already emerged as a major resistance zone. Investors previously acquired roughly 1.07 million BTC within that range, with a substantial portion of the supply held by long-term holders.
This concentration of supply could increase selling pressure as Bitcoin enters the zone. However, the accumulation of leveraged short positions creates the possibility of a short squeeze.
If BTC rises far enough to trigger liquidations, short sellers could be forced to buy Bitcoin to close their positions. That additional demand could help the price move rapidly through the resistance area.
Glassnode said the short positions have been accumulating for several weeks, increasing the potential for accelerated volatility if Bitcoin reaches the liquidation cluster.
Glassnode’s leverage data suggests that the wider cryptocurrency market may still have room to extend its recovery.
The analytics firm monitors the proportion of total open interest attributable to altcoins relative to Bitcoin.
When the two figures move within a few percentage points of each other, speculative activity is often considered excessive, and the market may be overheating.
According to Glassnode, altcoin open interest has not yet reached that risk threshold.
This suggests leveraged speculation remains contained enough to support another potential move higher, although increasing open interest would also raise liquidation risks.
Bitcoin bulls target the $85,000 resistance
Bitcoin is trading above $81,200 on Monday as buyers maintained control following last week’s rally.
The cryptocurrency remains comfortably above its 50-day, 100-day, and 200-day Exponential Moving Averages.
These indicators are clustered between roughly $72,000 and $75,000, leaving BTC well above its major medium- and long-term trend levels.
The moving averages are also sloping upward. Bitcoin’s 50-day EMA remains above both the 100-day and 200-day averages, a structure that suggests the broader uptrend remains intact despite the market’s recent consolidation.
The next major resistance level sits near $85,000. A decisive break above that barrier could clear the way for Bitcoin to challenge new highs.
Bitcoin’s Relative Strength Index stood at approximately 64 on Monday. The reading places BTC firmly within bullish territory but below the commonly watched overbought threshold of 70.
This suggests buying pressure is strengthening without yet reaching levels that typically indicate an overstretched rally.
The Moving Average Convergence Divergence indicator has also turned positive again. The shift signals that upside momentum is rebuilding following an earlier period of cooling.
Together, the RSI and MACD reinforce Bitcoin’s near-term bullish outlook. However, failure to overcome $85,000 could encourage profit-taking and another period of consolidation.
Bitcoin’s 50-day EMA, currently near $74,807, represents the first major dynamic support level if the price reverses.
Below that, the 200-day EMA at approximately $73,458 and the 100-day EMA near $72,240 create a wider demand zone. Buyers could attempt to defend this region during a deeper pullback.
A drop through the moving-average cluster would weaken the near-term outlook, although horizontal support levels at $66,500 and $62,300 would provide additional downside protection.
Bitcoin would need to fall below those levels to seriously challenge the prevailing bullish market structure.
For now, BTC’s position above its major moving averages, combined with strengthening momentum indicators, leaves the $85,000 resistance level as the primary target for buyers.
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