PANews reported on May 7th, citing CoinDesk, that Bitcoin has surged from approximately $63,000 to above $80,000 over the past three months, with multiple signals, including on-chain data, futures funding fees, and options gamma, pointing towards the $85,000 target. Bitcoin has broken through two key on-chain levels: the real market average of $78,200 and the short-term holder cost baseline of $79,100. Glassnode analysts point out that if the price remains above these two lines in the coming week, a bullish pattern will form, with the next major resistance level being the active realized price of $85,200.

Bitfinex analysts stated that funding rates have returned to neutral or slightly positive levels from the past three months of sustained negative values, indicating that a large number of short positions have been closed, eliminating downward pressure on the market. If Bitcoin continues to rise, this could trigger a short squeeze. Glassnode analysts also pointed out that options market makers face approximately $2 billion in hedging pressure around $82,000, forcing them to buy hedges as prices rise, potentially accelerating the rebound to $85,000. However, Bitcoin remains highly correlated with US tech stocks, and the risk of a stock market reversal should be noted.