Bitcoin experienced a sharp intraday reversal on Thursday, climbing from lows near $79,600 to a peak of $81,888. This movement was primarily driven by stronger-than-anticipated macroeconomic indicators from the United States, which helped the cryptocurrency recover from earlier session losses. The price action highlighted the asset's continued sensitivity to domestic economic data, particularly regarding growth and inflation metrics.

The rally occurred after the Federal Open Market Committee voted to keep interest rates unchanged at 3.75-4%, a decision that had initially pressured the market. However, subsequent data releases provided a bullish catalyst, allowing Bitcoin to reclaim key price levels and push its market capitalization up from $1.61 trillion to $1.64 trillion within a few hours.

BTC / USD
Source: CoinGecko. Prices are indicative.

Strong GDP Data Fuels Recovery

According to the U.S. Bureau of Economic Analysis, third-quarter gross domestic product grew at an annual rate of 3.4%, surpassing the 3.2% expected by economists. This robust growth figure, combined with Personal Consumption Expenditures data that aligned with forecasts, signaled a resilient economy despite ongoing geopolitical uncertainties.

Chris Rupkey, chief economist at Fwdbonds, noted that the economy is powering ahead despite higher energy costs. He observed that real GDP has returned to a 3% run rate for the first time in a year. This macroeconomic strength appeared to outweigh negative sentiment from corporate earnings, including a significant drop in Alphabet shares following a missed earnings report that wiped out over $500 billion in market value.

Derivatives Activity and Liquidations

The volatility surrounding the data release triggered substantial activity in the derivatives market. Coinglass data indicated that approximately $99 million in Bitcoin positions were liquidated during the session, with short positions accounting for over $52 million of that total. Across the broader cryptocurrency sector, total liquidations reached $412 million, reflecting a balanced wipeout of both long and short leveraged positions.

Traders on social media characterized the rapid price swings as a stop-loss sweep, a tactic often used to trigger orders on both sides of the trading range. While some participants viewed the movement as institutional manipulation, others pointed to the genuine liquidity shifts caused by the macro news flow.

Key Levels for Traders

Market analysts are closely watching specific price zones for the remainder of the week. Rekt Capital, a crypto trader and analyst, emphasized that Bitcoin needs to reclaim $81,400 by the weekly close to establish a stronger bullish structure. The firm noted that the asset has been zig-zagging between $80,400 and $81,400, a pattern likely to persist until the weekly candle closes.

Another analyst, Cryptoreviewing, highlighted significant liquidity clusters on the order book. There is $2.4 billion in liquidity above the current price between $81,500 and $84,000, while $2.9 billion sits below between $76,000 and $79,500. The larger downside liquidity pool suggests that a drop toward $76,000 is a plausible target if support levels fail, although whale buy orders totaling $490 million are positioned below $80,000 to provide a floor.

What to Watch Next

Investors should monitor whether Bitcoin can hold above the $81,400 resistance level before the weekly close. A successful breakout could open the path toward the $82,000 and $84,000 liquidity zones. Conversely, failure to maintain this level may result in a retest of the $78,500 to $79,600 support area.

Additionally, the impact of the Federal Reserve's commentary on inflation and economic activity will continue to shape market sentiment. Traders are advised to remain cautious with leverage given the high volatility and the presence of large liquidity pools that could drive rapid price movements in either direction.

Sources

This article was prepared by the CoinMag newsroom from the reports listed above.