Bitcoin closed out its strongest week since 2023, rallying 23.58% and adding $14,833 — the largest dollar gain of any week in the asset's history. The move pushed prices near $79,000 at the time of writing, up 1.8% over the past 24 hours, and broke a descending trendline that had held since October's record high.
The technical breakout
The weekly candle snapped a slide that had been capped by a line drawn from the all-time high of $126,195. Bitcoin first bounced off the $63,000–$66,000 support zone, then cleared the descending resistance, and finally pushed through the $74,000–$76,000 band — a level that should now serve as support. Along the way, BTC reclaimed its 200-day moving average near $69,000, a level that had capped every advance since October.
Momentum readings are stretched. Daily RSI sits at 82, its highest since 2024. Nearest resistance is the $82,215 swing high, followed by the $85,000–$87,000 zone. Bitcoin still trades roughly 38% below its record.
The short squeeze
The fuel for the move came on August 19, when the US Treasury doubled its long-dated bond buybacks. That announcement triggered a sharp upward move that liquidated about $2.7 billion of short positions. Aggregate perpetual funding jumped to its highest level of 2026 during the squeeze, meaning traders are now paying to stay long.
Open interest rose from $46.5 billion before the breakout to roughly $57.5 billion now, though that's still below January's $65.3 billion and May's $64 billion peaks. Weekly volume expanded but stayed under June's high.
Volatility signals
The BBWP indicator, which measures volatility expansion, moved from an extreme low to near-maximum reading. Historically that signals a large move is underway — though it doesn't say which direction. Given how far price has come in a week, the indicator's warning is worth noting.
What to watch
For the breakout to hold, Bitcoin needs to stay above $74,000 on a weekly close. Losing that band shifts focus back to the $63,000–$66,000 support. The next test is the $82,215 swing high, and beyond that the $85,000–$87,000 zone. With funding elevated and open interest still building, the market is positioned for a continuation — or a sharp reset if support gives way.
