Bitcoin jumps 11% to $71,920 as Treasury buybacks lift risk appetite

Bitcoin rose 11.4 percent to $71,920 on Aug. 20, its strongest advance in months, as Treasury buyback expansion and ETF inflows converged. The cryptocurrency traded between $64,323 and $71,747 over 24 hours, with volume reaching approximately $60.46 billion, according to crypto.news market data. The move lifted bitcoin's market capitalization to roughly $1.44 trillion and pushed it to its highest level since early June.

"What many have been waiting for over the past seven months has finally happened: BTC demand has synchronized and turned positive across both the spot and futures markets," CryptoJack, an independent crypto analyst, said on X.

U.S. spot Bitcoin ETFs recorded $517 million in net inflows on Aug. 19, their largest daily intake since early May, according to SoSoValue data. More than $1 billion in short positions were liquidated within one hour as bitcoin crossed $69,000, according to market data. The U.S. Treasury Department said Aug. 19 it would at least double the maximum size of liquidity-support buybacks for nominal securities in the 10-20 year and 20-30 year sectors, raising the cap from $2 billion to at least $4 billion per operation effective Sept. 9.

Bitcoin now faces resistance near $72,000, where Glassnode places the short-term holder cost basis. A sustained move beyond that zone could open a path toward $75,000, while failure to hold $70,000 would expose a retest of $68,000.

Treasury buyback expansion shifts macro backdrop

The Treasury described the operations as measures to support liquidity in older government securities, not Federal Reserve asset purchases or monetary stimulus. Still, larger buybacks can improve trading conditions in the Treasury market. Long-dated yields declined after the announcement, the U.S. dollar weakened, and risk assets advanced. Lower yields reduce the relative appeal of interest-bearing government debt compared with stocks, gold and cryptocurrencies.

The timing supports the view that the announcement helped trigger the move. It does not prove Treasury policy alone caused bitcoin's entire rally. ETF demand, leveraged positions and improving technical momentum were also active.

Technicals confirm stronger buying pressure

The daily BTC/USDT chart showed bitcoin breaking above the $60,000 to $66,000 consolidation range. Increased volume accompanied the larger bullish candle, providing stronger confirmation than a low-volume move through resistance. The Bull Bear Power reading rose to approximately 9,542, reflecting a sharp increase in bullish pressure. Chaikin Money Flow stood near 0.17, indicating buying volume exceeded selling volume during the measurement period.

Bitcoin also moved above its bull market support band and challenged the area around its daily 200-day moving average and exponential moving average. Daan Crypto Trades described the daily trend as positive but warned that bitcoin had entered the middle of a broader $60,000 to $80,000 range.

Ted Pillows said bitcoin needs a weekly close above $70,000 to maintain stronger upside momentum. "Bitcoin hit $70,000 today and broke above the bull market support band. Now, Bitcoin needs a weekly close above $70,000 for more upside momentum," he said on X.

The first level to watch is $70,000. Holding above it would turn the former resistance area into potential support and reduce the risk that the advance becomes a short-lived breakout. Resistance lies around $72,000 and the short-term holder cost basis. A sustained move beyond that zone could open a path toward $75,000, followed by the upper portion of the larger range near $80,000. Failure to hold $70,000 could lead to a retest of $68,000, where buyers returned during the initial pullback. Below that level, the previous breakout area between $65,000 and $66,000 would become important.

This article is for informational purposes only and does not constitute investment advice.