Bitcoin Drops After 7-Day Rally as Spot ETF Demand Remains Strong

Bitcoin experienced a 23% gain over the past seven days before dropping to around $79,000. In the last 24 hours, it has declined by about 1.2%. The broader CoinDesk 20 index fell by 2.1% in the same period.

The Crypto Fear & Greed Index, which measures market sentiment, rose from 27 to 74 in less than two weeks before retreating slightly. Despite this, demand remains strong, particularly for spot Bitcoin ETFs. According to SoSoValue data, a US-listed spot Bitcoin ETF saw $314 million in net inflows on Tuesday, marking the seventh consecutive day of net inflows and exceeding $300 million in August.

Mercado Bitcoin researcher Pedro Fontes views $82,000 and $85,000 as potential resistance levels. Given the recent vertical rise, some consolidation is seen as natural. Deribit traders are actively pursuing call options with strike prices between $82,000 and $100,000.