Bitcoin BTC price managed to reclaim the $80,000 mark ahead of the upcoming US inflation data releases after buyers stepped in near a key support zone during a sharp market selloff tied to geopolitical tensions and ETF outflows.
According to TradingView data, Bitcoin recovered above $80,000 on Friday after briefly falling to an intraday low near $79,250, while CoinGlass data showed more than $289 million in liquidations hit leveraged crypto positions during the decline.
The pullback came after reports of renewed tensions involving the US and Iran unsettled risk markets and pushed the S&P 500 away from recent record highs.
Spot Bitcoin ETFs in the US also recorded $277.5 million in net outflows on Thursday, ending a five-day inflow streak worth nearly $1.7 billion, according to SoSoValue data.
Farside Investors figures showed Fidelity’s Wise Origin Bitcoin Fund led the redemptions with $129 million in outflows, while BlackRock’s iShares Bitcoin Trust lost another $98 million.
Despite the pressure, buyers defended the $78,000 to $79,000 range that several market analysts had identified as an important support area.
According to crypto analyst Ted Pillows, Bitcoin needed to hold the zone for another bounce-back attempt, warning that a breakdown below it could trigger a deeper correction.
$BTC is now below the $80,000 level.
The next key support zone is $78,000-$79,000 which should hold for another bounceback.
Losing this zone means BTC will experience deeper correction.
Bitcoin later stabilised above that level as trading moved into the European and US sessions.
Exchange supply trends added support to the recovery narrative.
Market data cited by analysts showed nearly 100,000 BTC moved into private custody over the past 90 days, reducing exchange balances while institutional spot demand continued to absorb available supply.
Analysts watch support levels as volatility risks remain
The rebound came as traders processed April’s US Employment Situation report, which showed the economy added 115,000 jobs, above consensus estimates tracked by economists.
The unemployment rate remained at 4.3%, according to Bureau of Labor Statistics data.
QCP Capital said in its weekly report that perpetual swap markets are now pricing more than a 50% probability of a Federal Reserve rate hike by April 2027, while expectations for early rate cuts have been pushed further out despite Treasury yields easing slightly.
Analysts at the firm tied the Fed outlook to persistent energy-driven inflation concerns following renewed uncertainty around the Strait of Hormuz and Middle East ceasefire negotiations.
Nansen senior research analyst Jake Kennis said Bitcoin’s recovery above $81,000 had been driven largely by institutional spot buying and short liquidations rather than retail participation.
Kennis added that funding rates remained relatively soft during the rally, while trading activity on HyperLiquid ahead of the payrolls report showed only modest positioning.
Meanwhile, Bitget Wallet research analyst Lacie Zhang said pullbacks toward the $75,000 to $78,000 area remain possible if retail demand fails to strengthen.
Technical analysts are continuing to monitor Bitcoin’s long-term structure after the latest bounce.
Michaël van de Poppe said the recent retracement was not unexpected after several strong sessions higher and maintained that the trend could still support additional upside in the coming weeks as long as support levels remain intact.
Van de Poppe later pointed to $76,000 as a key level that needed to hold.
Fellow analyst, Rekt Capital, however, pointed out that Bitcoin was still trading between its 21-month and 50-month exponential moving averages after staging a relief rally from the lower macro support band.
The analyst noted that earlier market cycles saw Bitcoin spend extended periods between those levels before establishing a clearer trend direction.
Investors are now watching upcoming US inflation readings, including the Consumer Price Index and Producer Price Index reports due next week, for further clues on interest rate expectations and risk appetite across crypto markets.