Bitcoin Consolidates Around $82,500 as Selling Pressure Persists
Bitcoin's price has been hovering around $82,500, and experts believe it needs to close above this threshold to confirm the elimination of selling pressure. According to BitForex founder Garrett Jin, ETF inflows are providing support for Bitcoin, but caution is warranted if the price falls below $76,600 and indicators weaken. The market is currently in a period of consolidation, with volatility expected until selling pressure subsides.
Garrett Jin's analysis suggests that the current trading range is between $72,500 and $84,000, with $80,000 to $82,500 constituting a key resistance band. He believes sideways movement facilitates deleveraging, but if the daily close holds firmly above $82,500, it would indicate an easing of surplus supply.
One critical variable lies in capital flows, which show that U.S. spot Bitcoin ETFs recorded net inflows of approximately $2.8 billion over eight consecutive trading days as of August 26, bringing total net inflows for August to $3.3 billion, a new monthly high for the year.
Investors should remain alert to any weakening in at least two of the following indicators: ETF flows, the Coinbase (COIN.US) premium level, and the seven-day average of realized profit/loss, as these would signal a loss of momentum. Despite BitForex being embroiled in fraud allegations, King's analysis remains reference-worthy.