Bitcoin is showing a rare alignment across on-chain data, futures positioning, and options flows that points to further upside, with the cryptocurrency currently trading near $80,800 after breaking key resistance levels. According to Glassnode research, Bitcoin has topped two critical levels: the True Market Mean at $78,200 and the Short-Term Holder Cost Basis at $79,100, with analysts noting that should price sustain above these two levels in the coming week, the deep value regime that persisted from early February 2026 through now would rank among the shortest episodes of its kind in Bitcoin market history. The Active Realized Price near $85.2K now represents the next structural threshold the market must address, with attention shifting to this level as the next major resistance. Funding rates have flipped from negative to neutral or slightly positive, removing sustained short pressure in futures markets, while market makers hold short gamma exposure around $82K with roughly $2 billion sitting near current prices, creating a feedback loop that can accelerate price action.
Bitcoin has slipped back to $80,000 on Thursday after reaching a $82,700 high on optimism surrounding a potential US-Iran deal, according to The Economic Times. The cryptocurrency was trading at $80,922 as the market took a breather after strong recent momentum. In the past 24 hours, Bitcoin and Ethereum slipped 0.5% and 2% respectively, while among major altcoins, XRP, Dogecoin, and Hyperliquid corrected up to 4% whereas BNB, Solana, Tron, and Cardano rallied up to 1.5%. The pullback comes as global stock markets ripped to fresh records on U.S.-Iran ceasefire hopes, with reports indicating the two countries are working on a proposal to end the nearly 10-week conflict. The MSCI All Country World Index advanced 0.3% and MSCI's Asia gauge jumped 1.9% to a record, with Japan's Nikkei 225 hitting an intraday high.
The recent Bitcoin rally was fueled by a sharp short squeeze that triggered more than $242 million in bearish liquidations over the past 24 hours, according to The Economic Times citing Akshat Siddhant, Lead quant analyst at Mudrex. The weaker U.S. dollar also provided additional support to the rally. In the past week, Bitcoin and Ethereum were up 7% and 4% respectively, with among the major altcoins, XRP, BNB, Solana, Tron, Dogecoin, Hyperliquid and Cardano rallied up to 8%. Vikram Subburaj, CEO of Giottus, noted that Bitcoin traded around $81,100 on May 7, 2026, remaining above the psychologically important $80,000 level despite a mild slowdown in momentum, with the asset managing to hold most of its recent gains after a steady institutional-driven rally.
Bitcoin's next major test sits at the 200-day moving average around $83,300, according to FxPro chief market analyst Alex Kuptsikevich, who noted that "a firm consolidation above this level would be a further sign of bullish dominance." The cryptocurrency is currently holding around $80,000 after crossing the $80,000 resistance level, with technical indicators suggesting Bitcoin could be preparing for another leg higher toward the $85,000 region. The MACD lines remained in bullish territory and appeared close to printing another positive crossover after the histogram flipped green again, signaling strengthening upward momentum. The Aroon Up indicator surged to 100 while the Aroon Down remained subdued near 50, a setup often associated with strengthening bullish trends. If buyers maintain control above the $82,000 breakout zone, analysts expect Bitcoin could soon attempt a move toward the $84,000–$85,000 range in the coming sessions, though failure to hold above $81,000 could see the asset retest support near $80,000 before another breakout attempt.
The structural backdrop continues to support the crypto market move, with Tether's market cap growing by $5.9 billion over the past 60 days, reversing a $2 billion monthly outflow trend that ran through early 2026, according to analyst Darkfost. Such issuances are considered to be a source of new capital entering the crypto market. Morgan Stanley signalled this week that US banks may eventually be able to hold bitcoin on their balance sheets despite current regulatory barriers, with the bank already running a bitcoin-based ETP and planning to launch spot crypto trading on its wealth platform later this year. Western Union launched its own stablecoin, USDPT, on Solana to bypass traditional interbank settlement delays. In other developments, BitMine added more than 100,000 ETH for the third straight week, taking its ether reserves to 5.18 million ETH worth roughly $13 billion, or 4.29% of total supply.
Bitcoin dominance has surged by 4.38% in the past month, reaching 67% according to latest data, marking the highest monthly increase recorded. This represents the highest dominance level since January 31, 2026, with the cryptocurrency now trading at $82,700 after crossing the $80,000 resistance level. The dominance metric has been climbing steadily since the market began recovering at the end of March, as noted by Kaleo, co-founder of the NFT project LedgArt. Bitcoin's market capitalization has climbed to $1.6 trillion, while its dominance over the altcoins stands tall at 67% on CoinGecko. The Fear & Greed Index is now in the "Greed" zone, indicating elevated sentiment that typically signals capital flowing into the leader rather than broad altcoin rotation. Investors are advised to prioritize risk management, avoid FOMO-driven entries, and maintain sufficient liquidity for volatility spikes, according to CoinSwitch Markets Desk.
