Bitcoin, Ethereum, and XRP extended their rallies on Friday as improving liquidity expectations continued to lift the broader cryptocurrency market.

Bitcoin has gained nearly 20% this week, while Ethereum has climbed more than 25% and XRP has advanced almost 30%. The advance gathered momentum 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 all three cryptocurrencies trading firmly higher, investors are now watching whether Bitcoin can reach $80,000, Ethereum can reclaim $2,500, and XRP can push toward $1.50.

Treasury buyback expansion strengthens crypto rally

The Treasury's decision to expand its debt buyback program has helped improve sentiment across financial markets. 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.

Cryptocurrencies responded strongly to the announcement, with Bitcoin, Ethereum, and XRP 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 traded around $76,800 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. BTC's position above all three indicators supports a bullish near-term outlook and suggests that the market's broader technical structure has improved considerably. The breakout was accompanied by strong trading volume, which adds credibility to the latest upward move. For traders and market participants, the move above the 200-day EMA is notable because that level is often watched as a key technical reference for trend strength, and sustained trading above it would reinforce the case for further gains while helping establish the level as new support.

Bulls target the $80,000 resistance

Attention is now turning to Bitcoin's next major hurdle near the psychological and horizontal barrier at $80,000. A move from $74,700 to $80,000 would represent an additional gain of approximately 7.1%. The $80,000 level, however, could attract profit-taking and fresh selling pressure following Bitcoin's rapid weekly advance. A decisive break and daily close above the barrier would strengthen the bullish outlook and potentially open the way to higher levels, while a failure to clear $80,000 could lead to a period of consolidation as traders digest the recent gains.

Bitcoin's momentum indicators remain bullish but increasingly stretched. The relative strength index (RSI) is hovering near 83, placing BTC firmly in overbought territory. Such an elevated reading does not guarantee an immediate reversal, but it indicates that 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. Together, the indicators suggest that bulls remain in control, although the risk of short-term profit-taking has increased following the steep weekly advance.

If Bitcoin retreats, initial support sits at the 200-day EMA near $71,545. Holding above this indicator would preserve the immediate bullish structure and could provide a foundation for another attempt at $80,000. A deeper correction would bring the 100-day EMA at $66,727 and the nearby horizontal level at $66,500 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.

Source: CoinJournal