Bitcoin crossed $80,000 for the first time since mid-May, and Wall Street options desks are now betting the rally carries it above $82,000 by early September. But several analysts warn the move could still reverse into a bull trap.
Bitcoin breaks $80,000 as dollar-debasement trade builds
Bitcoin crossed the $80,000 level for the first time since mid-May on Tuesday, Reuters reported. Another overnight jump pushed its gain over the past 10 days past 30%. The move tracked a broader shift out of the dollar, with gold also touching its highest level since May, up 15% for the month.
Bond yields and the dollar have broken from their usual correlation over the past month. State Street's Michael Metcalfe told Reuters that shift signals renewed unease about Washington's finances. According to Reuters: "There is just a kind of concern about the fiscal situation in the U.S."
Options desks bet on an $82,000 breakout
Wall Street traders are piling into bullish options tied to Bitcoin's next move. CryptoProwl reported that traders bought call options with an $82,000 strike price expiring Sept. 4, wagering the price clears that level before expiry. One trader alone spent $2.9 million on the contracts.
Bitcoin briefly touched $80,995 before pulling back to $79,150. Its price has risen nearly 25% over the past week, CryptoProwl said. Its trading range now appears to sit between $74,000 and $80,000. That's after breaking above resistance at $65,000, though Bitcoin remains well under its October 2025 all-time high of just over $126,000.
Bears see a bull trap forming
Not everyone reads the rally as the start of a new bull run. CryptoPotato reported that Bitcoin jumped 23% over the past week, briefly exceeding $81,000, but several traders expect the move to reverse. One, Nonzee, argued the pump stemmed from a liquidity squeeze that could unwind toward $45,000, while another sees a drop as low as $40,000 if support near $68,000–$70,000 fails to hold.
Bitcoin's RSI has climbed to 83, entering extreme overbought territory that has historically preceded a short-term correction, CryptoPotato noted — a setup some traders read as a bull trap rather than confirmation of a breakout.
Sources: Reuters, CryptoProwl, CryptoPotato
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