Bitcoin extended its rally on Tuesday, breaking through the $80,000 psychological level for the first time since May 4, as improving liquidity expectations continued to lift the broader cryptocurrency market.

The advance is part of a broad-based surge: over the past week, Bitcoin has gained nearly 30%, Ethereum has risen more than 25%, and XRP has advanced almost 30%.

Momentum built after the U.S. Treasury announced plans to double the size of certain debt buyback operations, a decision that eased liquidity concerns and strengthened demand for risk-sensitive assets. With Bitcoin still climbing, investors are now watching whether the rally can extend toward the $85,000 level.

Treasury buyback expansion underpins the crypto rally

The primary catalyst behind Bitcoin's rally over the past seven days is the U.S. Treasury's decision to expand its debt buyback program. Larger buybacks can support liquidity in the market for longer-dated Treasury securities, easing financial pressures and encouraging investors to increase their exposure to riskier assets.

For readers less familiar with the mechanism, a buyback means the Treasury repurchases outstanding debt from the market, effectively exchanging cash for older, less liquid securities. The department has been running regular buyback operations since resuming the practice in 2024, so an expansion of the program is read as a signal that liquidity support will remain in place.

Major cryptocurrencies including Bitcoin, Ethereum, and XRP responded strongly to the announcement, recording double-digit weekly gains. Short liquidations added fuel to the move, as bearish traders were forced to close their positions, creating additional buying pressure.

Bitcoin hit the $80,000 level on Friday after decisively breaking above its major exponential moving averages. The 200-day EMA stands at $71,545, while the 100-day and 50-day EMAs sit at $66,727 and $65,286, respectively. Trading above all three indicators supports a bullish near-term outlook and points to a considerable improvement in the market's broader technical structure. These moving averages smooth out daily price fluctuations over their respective timeframes, and price action above them is conventionally treated as a sign that longer-term momentum has turned constructive.

Market data shows that the current breakout is accompanied by strong trading volume, which adds credibility to the latest upward move. Continued trading above the 200-day EMA would reinforce the case for further gains and could establish that level as new support.

Bulls target the $82,689 resistance

Bitcoin's next major resistance lies near the psychological and horizontal barrier at $82,689. Buyers have already pushed the price past $80,000, keeping fresh selling pressure from dampening the ongoing rally. A decisive break and daily close above $82,689 would strengthen the bullish outlook and potentially open the way to higher levels, while failure to clear the barrier could lead to a period of consolidation as traders digest recent gains.

Momentum indicators remain bullish but increasingly stretched. The relative strength index (RSI), a momentum oscillator scaled from 0 to 100 in which readings above 70 conventionally mark overbought conditions, is hovering near 85, placing Bitcoin firmly in overbought territory. Such a high reading does not guarantee an immediate reversal, but it indicates the rally may be vulnerable to a corrective pause. The moving average convergence divergence (MACD) remains strongly positive, showing that upward momentum is still intact. Taken together, the indicators suggest bulls remain in control, although the risk of short-term profit-taking has increased.

If bears regain control, initial support sits at the 200-day EMA near $74,700. Holding above this indicator would preserve the immediate bullish structure and could provide a foundation for another attempt at $83,000. A deeper correction could bring the 100-day EMA at $71,545 and the nearby horizontal level at $66,727 into focus. Below that region, the 50-day EMA at $65,286 offers another layer of support, followed by the structural floor at $62,300. A sustained decline below $62,300 would weaken the broader bullish outlook, while continued trading above the 200-day EMA would keep the $80,000 target within reach. Beyond the chart itself, the Treasury's upcoming buyback operations and the liquidity conditions they are intended to support provide a macro checkpoint for traders to watch alongside the $82,689 resistance.