Bitcoin Blasts Past 30% August Gain as $81,000 Becomes Key Resistance
Bitcoin (BTC) has delivered its strongest month since November 2024, surging over 30% in August. The cryptocurrency briefly crossed $81,000 on Friday morning, with some traders eyeing a potential breakout above this level.
The rally accelerated after Bitcoin cleared the 200-day Simple Moving Average (SMA) at $69,000, triggering forced purchases from traders holding leveraged short positions. This short covering can produce rapid upside as bearish traders must buy the asset to exit their positions.
US spot Bitcoin ETFs have recorded a sustained run of inflows, with several billion dollars entering during August. This institutional buying represents direct demand rather than leveraged speculation, giving the recovery a sturdier foundation.
However, until the upper boundary of the descending channel near $81,000 breaks, the broader decline technically remains intact. A daily and preferably weekly close above this level would weaken the downward-channel structure and expose the wider $83,000-$86,000 supply zone.