Bitcoin Consolidates Near Highs as Institutional Demand Remains Strong

Bitcoin continues to consolidate near its recent highs as strong institutional demand remains a key driver of support. The US-listed spot Bitcoin Exchange Traded Funds (ETFs) recorded nearly $1 billion in net inflows for the third straight week, showing no signs of slowing down.

The recent surge in oil prices and resilient US labor market have capped upside potential for BTC, however, as these factors add to inflationary risks and keep Fed tightening expectations elevated. This could weigh on risky assets such as Bitcoin.

Looking at technical analysis, the Crypto King is trading slightly below $79,500 after gaining 3.42% last week. Momentum remains strong, with a Relative Strength Index (RSI) reading of 57 and a Moving Average Convergence Divergence (MACD) flipped to a bullish crossover in mid-July.

However, if BTC corrects and the 50-day Simple Moving Average at $79,718 fails to hold, the Crypto King could extend its decline toward the key psychological level of $70,000.