Bitcoin breaks above key moving averages as weekly rally accelerates

Bitcoin, Ethereum and XRP extended their rallies Friday, with the three assets gaining nearly 20%, more than 25% and almost 30% for the week respectively. The advance followed the U.S. Treasury's announcement to double the size of certain debt buyback operations, a move that eased liquidity concerns and strengthened appetite for risk-sensitive assets. Larger buybacks support liquidity in the longer-dated Treasury securities market, encouraging investors to increase exposure to riskier holdings.

Short liquidations accelerated the rally as bearish traders closed positions, adding further buying pressure. Bitcoin traded around $76,800 on Friday after breaking decisively above its 50-day, 100-day and 200-day exponential moving averages, positioned at $65,286, $66,727 and $71,545 respectively. The breakout came with strong trading volume, and sustained trading above the 200-day EMA could establish it as new support.

Investors are now watching whether Bitcoin reaches $80,000, Ethereum reclaims $2,500 and XRP advances toward $1.50. Bitcoin's next major resistance lies near the $80,000 level, representing an additional 7.1% gain from recent levels. A decisive break above this barrier would strengthen the bullish outlook, though the level could also attract profit-taking after the rapid weekly advance. Failure to clear $80,000 may result in consolidation as the market digests recent gains.