Bitcoin jumped above $80,000 overnight for the first time since in more than three months but quickly fell below the milestone early Tuesday.

The world's largest cryptocurrency has had a dramatic rise, jumping 23% in the past week. The rally began shortly after the Treasury Department announced plans to increase longer-dated bond buybacks. President Donald Trump's push for Congress to approve the long-awaited Clarity Act crypto regulation also helped.

Bitcoin fell to $79,278 early in the day, from a high of $80,995. The dip isn't a concern just yet. But Bitget analyst Ryan Lee said the level was a test of whether the rally has staying power.

"A sustained break above $80,000, backed by continued ETF inflows, would signal a meaningful shift in positioning and open the 82,000-87,000 range," he said in a note. But he expects Bitcoin to trade between $74,000 and $81,000 in the near term.

"After such a rapid repricing, a pullback toward 75,000-76,000 would be consistent with profit-taking."