Bitcoin eyes $80,000 after biggest weekly jump in three years

Bitcoin is showing one of its strongest rallies in years, surging more than 23% in a single week and breaking above $77,500 as a powerful short squeeze and renewed institutional demand pushed the market sharply higher.

The move marks a major shift from the weak conditions seen earlier in 2026. After months of selling pressure and a sharp June decline, Bitcoin has staged a strong recovery in July and August, bringing bullish momentum back to the crypto market.

With BTC now approaching a major liquidity zone near $80,000, traders are watching to see whether Bitcoin can continue its vertical rally or face its next major rejection.

Bitcoin posts its strongest jump in three years

Bitcoin's latest move has been one of its most significant weekly rallies in the past three years.

BTC climbed more than 23% in a week, decisively moving above the $77,500 area and recovering important technical levels. The rally has also helped reverse the bearish sentiment that dominated much of the first half of 2026.

January and February were difficult months for Bitcoin, while June brought another major sell-off that pushed the market back into bearish territory.

However, the recovery began to take shape in July before accelerating dramatically in August.

Bitcoin's month-to-date performance has now reached roughly 22.7%, far above its historical average August return of around 0.82%.

The latest breakout has led some analysts to argue that Bitcoin may have finally moved beyond its multi-month bearish phase.

$71,000 turns into key support

The recent rally has also changed Bitcoin's technical structure.

According to market analyst Doctor Profit, the $71,000 level has shifted from being a major resistance zone into an important support area.

That level could now become critical if Bitcoin sees a short-term pullback.

The next immediate target sits around $78,500, while a sustained breakout above that area could bring the $80,000 region into focus.

Beyond that, some traders are watching the $82,000 level as the next major upside target.

This follows Bitcoin's recent breakout above $75,000, which marked an important shift in market momentum after months of consolidation.

Related: Bitcoin crossing $76,000 and outperforming Ethereum and Solana

Short squeeze and ETF inflows fuel the rally

The Bitcoin rally has been driven by two major forces: a large short squeeze and strong institutional demand.

As BTC moved rapidly higher, bearish traders were forced to close leveraged short positions. Those forced liquidations added more buying pressure and helped accelerate the breakout.

This dynamic has already played an important role in the broader crypto recovery.

At the same time, spot Bitcoin ETFs recorded approximately $1.91 billion in net inflows between August 17 and August 21. Daily inflows reportedly peaked at $606.29 million during the week.

The funds' total net assets reached approximately $96.07 billion, highlighting the continued role of institutional capital in supporting Bitcoin's recovery.

Related: Ethereum breaking above $2,000 for the first time this summer

For now, Bitcoin remains firmly in the spotlight. After one of its biggest weekly jumps in three years, the market's attention has shifted from whether BTC can recover to whether it has enough momentum to break through the $80,000 barrier.