Bitcoin's $80K rally may be a liquidity squeeze, Bitfinex warns

Bitcoin's recent climb above $80,000 may be driven more by a temporary liquidity squeeze than genuine bullish momentum, according to Bitfinex analysts. The cryptocurrency touched $82,000 on May 11 before retreating to the lower $79,000s on Thursday, raising questions about the sustainability of the rally.

On-chain metrics are showing the most constructive signals since early February, but underlying seller behavior and derivatives positioning suggest the road to new highs will not be easy. Long-term holders have increased their bitcoin holdings by 300% since the end of 2025 to nearly 4 million tokens, but they have started taking $180 million in profits per day since BTC rallied above $82,000. Bitfinex noted that this is a moderate amount compared with past cycles and suggests current selling is controlled. However, the concern lies in daily derivatives positioning, which could amplify any pullback. Traders can monitor these moves on NowPrice's live crypto dashboard to track real-time price action and on-chain data.

Looking ahead, the key question is whether Bitcoin can hold above the $80,000 psychological level. If long-term holder selling accelerates or derivatives positioning turns more bearish, a deeper correction could unfold. The next major support lies around $75,000, while resistance remains near the recent highs. Traders should watch for any shift in on-chain metrics, particularly exchange inflows and whale activity, which could signal the next directional move.