Bitcoin Breaks Above $72,000; $75,800 Looms as Next Key Resistance Amid Mixed On-Chain Signals

Bitcoin pushed above $72,000 on Thursday, extending a rapid rebound that has lifted BTC about 15% since the start of the week and flushed billions of dollars of bearish derivatives bets. The move followed a break back above $70,000 for the first time since early June. BTC later hovered in the low-$72,000s, while crypto-linked equities such as Coinbase and Strategy advanced as well. Reuters earlier put Bitcoin near $71,700, up 3.4% on the session, before the rally accelerated. Markets attributed the surge to a mix of easing long-end U.S. yields, firmer signals around U.S. crypto policy, and a large short squeeze that intensified after BTC cleared key technical levels. U.S. Treasury buybacks and policy headlines fuel risk appetite The bond market provided an initial tailwind after the U.S. Treasury increased the size of several long-dated debt buyback operations from $2 billion to at least $4 billion, following the 30-year Treasury yield's move to a 19-year high. The larger buybacks helped relieve pressure on long-term yields, supporting risk assets including Bitcoin and major technology stocks. Reuters said the Treasury expects the expanded operations to add at least $14 billion in buybacks during the current quarter. Politics added momentum. President Donald Trump urged Congress to pass a "fair version" of the stalled CLARITY Act after meeting crypto executives and regulators at the White House. The bill aims to clarify how digital assets fall under SEC versus CFTC oversight. Once Bitcoin broke through $70,000, leverage amplified the advance. Market data showed crypto short liquidations topping $3 billion over two days, one of the largest short-covering episodes in years. $75,800 emerges as the next major hurdle Despite the breakout, on-chain readings have not yet confirmed a full trend reversal. Bitcoin has reclaimed Glassnode's Short-Term Holder cost basis around $68,500, a notable improvement after weeks of softness. Glassnode's True Market Mean, though, remains near $75,800, marking a major resistance zone above current levels. Glassnode's weekly report also put the Realized Profit/Loss Ratio around 0.75. The firm views a move above 2 as stronger evidence the market has shifted into a more durable expansion phase. Bitcoin is in a stronger position than it was days ago, but the next confirmation zone still lies ahead. Maintaining roughly $68,500–$70,000 while spot demand turns positive would support the view that the move toward $72,000 is evolving into a broader recovery rather than being driven mainly by forced covering. Spot demand nears a potential flip to positive The key test is whether organic buying can replace short-squeeze dynamics. A CryptoQuant report published Aug. 18 showed Bitcoin's 30-day apparent spot demand improving sharply, from -206,000 BTC on July 23 to about -5,000 BTC, leaving the metric close to turning positive for the first time since late February. CryptoQuant said prior shifts from negative to positive apparent demand were followed by a median 60-day BTC return of 18.1%, with positive outcomes in 78% of the independent signals it reviewed. The improvement follows a stretch in which spot demand trailed derivatives activity, leaving earlier rebounds more vulnerable. Large-holder behavior is also drawing attention. More than 38,000 BTC recently flowed into accumulation addresses at an estimated average cost basis around $70,000, a level now back in focus after BTC moved above it.