Bitcoin Wipes Out Overnight Crash, Back Above $78,300 on $420M Bullish Bets

Bitcoin wiped out its overnight crash within hours. The world's largest crypto fell to $75,700 early Wednesday, then ripped back above $78,300 as buyers flooded in, according to beincrypto.com.

The trigger was political. Democrats swept both chambers of Congress in the US midterm elections, and traders fretted the result could stall Trump's crypto-friendly legislation. Nasdaq futures slid hard before steadying, and once the political fog lifted, institutional desks started angling for a rebound.

They didn't sit on their hands. Election-day block trading in Bitcoin options hit $660 million — more than double the prior day — with roughly $420 million in call options bought against $105 million sold, per the report. Those contracts pay off if Bitcoin climbs. Leverage poured fuel on the move too: forced closures of bullish positions and liquidations of short sellers both fed the snapback.

Technically, the coin was stretched. Bitcoin's Relative Strength Index bottomed at 13 — deeply oversold — and has since clawed back, a setup the report says makes a push toward $82,000 likely. Bitfinex's latest analysis flags $81,300 as a brick wall, with plenty of coins bought above current prices waiting to become sell pressure.

Demand is the real question mark. US spot Bitcoin ETFs bled roughly $1.16 billion in net outflows across the last three trading sessions. Wintermute's analysts say Bitcoin has to reclaim and then hold $80,000 — backed by actual spot buying and ETF inflows — for this recovery to have legs.

So all eyes sit on $80,000. Clear it, and the door opens toward $81,300–$82,000. Stumble, and Bitcoin could be back testing $77,000 and potentially Wednesday's $75,700 low. The options market is betting on the first option; now spot buyers need to show up.