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Bullish Bitcoin Price Breakout: Keeping Our Buy BTC Trade as It Breaks Above 200-Day SMA for First Time Since November
Bitcoin surged to $72,670 today, breaking above the 200-day SMA for the first time since November as easing Treasury yields and massive short liquidations accelerated the bullish reversal.
Written by:
Skerdian Meta•Thursday, August 20, 2026•2 min read
•Last updated: Thursday, August 20, 2026
Bitcoin Breaks Above $70,000
Bitcoin extended its recovery on August 20, surging through the $70,000 level and reaching an intraday high of $72,670, its highest level since early June.
The move was technically significant. BTC broke above the 200-day SMA, which had acted as major resistance since November last year, strengthening the bullish reversal that has developed after Bitcoin spent an extended period trading around $60,000.
The breakout has also pushed Bitcoin above key moving averages and reclaimed the 0.5 Fibonacci retracement level, improving the broader technical structure.
Treasury Buybacks Boost Risk Appetite
The rally received support from a shift in the US Treasury market. The Treasury announced plans to expand liquidity-support buybacks for longer-dated government bonds, potentially easing pressure on long-term yields.
Lower yields and a weaker dollar can improve the environment for risk assets, providing support for Bitcoin and other high-volatility markets.
However, macro conditions were only part of the story.
$3 Billion Short Squeeze Accelerates the Rally
The more immediate catalyst was an enormous liquidation of bearish positions.
According to CoinGlass data, total crypto liquidations exceeded $3.3 billion over 24 hours, with approximately $3 billion coming from short positions.
As Bitcoin pushed through major resistance levels, forced short covering created additional buying pressure and accelerated the move toward $72,000.
Improving expectations surrounding US digital asset regulation also helped strengthen sentiment.
$73,227 Remains the Critical Barrier
Despite the strong breakout, Bitcoin now faces important resistance at the 0.618 Fibonacci level near $73,227.30.
A sustained move above that area could confirm that the recent rebound is developing into a stronger bullish recovery. However, failure to break higher could trigger volatile consolidation, particularly if the short-squeeze momentum begins to fade.
The key support level is now around $70,265.89.
Bitcoin’s recovery is clearly gaining momentum, but sustained spot demand and continued ETF inflows will be needed to prevent the rally from losing momentum after its explosive short-squeeze-driven advance.
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ABOUT THE AUTHOR
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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank’s local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Source: www.fxleaders.com