Bitcoin’s push to $80,000 has shifted from an explosive upward momentum to a cautious contraction phase. After reaching $79,473, the price fell to $75,568 as the upper wick confirmed strong selling near the psychological barrier.
However, Bitcoin did not fall back down to its previous low of $71,000. Instead, Bitcoin [BTC] is currently trading around $76,248, which is in the upper part of the expansion range.
This positioning shows that buyers are still absorbing supply despite weaker short-term momentum. The RSI reading of 68.73 confirms that there is less pressure from being overbought.
Moreover, the MACD indicator has not yet crossed below zero, which continues to show upward momentum. However, since it is narrowing down, it may be indicating a slower increase in price.
In conclusion, at $75,568, the rally support point becomes the anchor point for rally support. Therefore, if the price can reach $77,015, then there will be renewed upward momentum toward the peak of $79,473.
STHs challenge Bitcoin’s rally near $80K
The rejection near $80,000 coincided with a sharp rise in Bitcoin sent to exchanges. The three-day 23% price increase resulted in 53,000 coins entering exchanges. This increase represents profit-taking along with the price.
Binance received 17,800 BTC, its largest Short-Term Holder (STH) inflow since February. Notably, every transferred coin came from wallets holding BTC for less than one day. Simply, this means that there was no long-term holder involvement.
Long-Term Holders (LTH) sent nothing, separating speculative turnover from broader distribution.
At the same time, the Binance Spot Delta was rapidly declining towards -$11.6 billion while the price was rising. This delta deterioration shows why the rally could not hold.
Therefore, the rally remains liquid but structurally narrow, with short-term capital driving volatility rather than committed accumulation beneath price strength.
Bitcoin ETF demand offsets spot selling
That sell-heavy Binance activity did not extend across every source of spot demand. For instance, in the five days between the 17th and the 21st of August, U.S. Bitcoin ETFs saw $1.92 billion in capital flow into them as investors continued to purchase them.
Daily demand strengthened from $297.56 million to $606.29 million before easing to $307.45 million. Meanwhile, cumulative inflows climbed from $52.09 billion to $53.71 billion, while traded value peaked at $6.89 billion.
This creates a more fragmented spot market structure than what is depicted by Binance Delta’s aggressive seller flow alone.
Therefore, Bitcoin’s rally lacked broad exchange buying, but it was not entirely detached from spot participation. Hence, continued and sustained EFT inflows will be important to maintain support for the current rally.
Final Summary
- Bitcoin fell from $79,473 to $75,568 as short-term selling intensified. Still, holding support keeps $80,000 within reach.
- BTC ETFs absorbed $1.92 billion despite weak Binance demand; sustained inflows remain critical for extending the rally.
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