Bitcoin Tops $80k as US Treasury Buybacks Lift Assets

Key Moments

Macro Backdrop: Treasury Actions and Scarce Asset Performance

Bitcoin (BTC) advances further above $80,000 on Tuesday, buoyed by persistent risk-on sentiment across markets. The move comes as investors react to signals that the US Treasury is actively addressing elevated yields in the long-dated bond segment, a dynamic that has been supportive for scarce assets.

According to a recent post on X by The Kobeissi Letter, the US Treasury is seen intensifying efforts to manage its roughly $40 trillion debt load and alleviate pressure in the bond market. Following a recent increase in buyback operations to $4 billion, the post indicates that additional measures under consideration include selling more short-term debt and removing long-dated bonds, among other options.

In a Bloomberg report cited in the article, US interest-rate strategist Martin Tobias noted that officials have been evaluating how to deploy any surplus cash. Morgan Stanley estimates that the Treasury could have between $80 billion and $200 billion available to expand buyback programs. The recent doubling of buybacks coincided with a stronger performance in Bitcoin and other scarce assets, and the current environment suggests that this trend could continue if interventions persist.

Bitcoin Technical Picture: Key Levels and Momentum Signals

On Tuesday, Bitcoin gains more than 2%, pushing the price above $80,000. The market structure remains positive as BTC trades firmly above both the 50-day Exponential Moving Average (EMA) at $67,394 and the 200-day EMA at $72,431, reinforcing a bullish bias.

Momentum indicators are aligned with the move higher. The Moving Average Convergence Divergence (MACD) line and its signal line are rising in positive territory, indicating sustained upside momentum. At the same time, the Relative Strength Index (RSI) is hovering near 83, highlighting overbought conditions that may increase the risk of corrective pullbacks.

From a price action standpoint, BTC is edging closer to the May 6 peak at $82,850. A decisive break above this level could pave the way for further gains. On the upside, the 127.2% Fibonacci extension of the decline from $82,850 to $57,800, located at $91,374, is identified as a potential target.

On the downside, first support is identified at the 78.6% Fibonacci retracement at $76,706. Below that, a more substantial support area is defined by the 200-day EMA at $72,431. Further down, the 50% retracement at $69,200, reinforced by the 50-day EMA at $67,394, forms a broader demand zone that could attract buyers in the event of a larger correction.

Aerodrome Finance (AERO): Bullish Structure Above Key Averages

Aerodrome Finance is higher by 2% on Tuesday, maintaining a constructive bullish stance as price action remains well above its 50-day and 200-day EMAs, which stand at $0.4492 and $0.4658, respectively. The token is moving toward the July 7 peak at $0.6100, where a confirmed break could open the way toward the 127.2% Fibonacci extension of the $0.3055 – $0.6100 advance, at $0.7362.

The RSI sits at 74, pointing to strong but increasingly stretched upside momentum. Meanwhile, the MACD line and signal line are advancing in positive territory with a clearly bullish configuration.

On the downside, initial support appears at the 78.6% Fibonacci retracement near $0.5260. Additional demand is seen around the 200-day EMA at $0.4658, which could serve as a buffer if prices pull back more sharply.

Virtuals Protocol (VIRTUAL): Extending a Two-Day Rebound

Virtuals Protocol is up nearly 3% on Tuesday, building on an 8% rise from the previous day. The recovery has pushed VIRTUAL decisively above the 50-day EMA at $0.6156 and the 200-day EMA at $0.6956, shifting the short-term outlook firmly in favor of the bulls.

The RSI is in overbought territory around 75, signaling strong, though stretched, upside momentum. The MACD and signal line continue to trend higher with an expanding bullish profile, indicating that buying pressure remains dominant for now.

On the upside, the rally is targeting the December 3 high at $1.0127, followed by the September 15 high at $1.1821 as subsequent resistance levels.