Bitcoin Pauses at $79K Amid Profit-Taking and Weaker Altcoins

Bitcoin's price surge slowed down after briefly topping $81,000 on Wednesday. The cryptocurrency retreated to around $79,000, but still remains more than 22% higher on the week due to steady institutional demand. U.S.-listed Bitcoin ETFs attracted a record-breaking $314 million in inflows for the seventh consecutive day, with August inflows surpassing $3 billion.

The pause comes after a steep advance from below $65,000 in just seven days. Futures data showed shorts accounting for 51.64% of taker flow, while Bitcoin open interest fell below 700,000 BTC as price declined. This combination suggests positions were being unwound rather than aggressive new shorts being built during the latest pullback phase.

The damage was more visible across major altcoins, with XRP falling about 4.5% after being rejected near $1.50, trading around $1.42. Solana slipped back below $100 and Ether retreated toward $2,450. DOGE, ADA, and XLM each dropped about 5%, while Zcash lost more than 7% and fell below $790.

Despite the pause, derivatives markets suggest traders have not abandoned the rally. Bitcoin's 30-day implied volatility continued retreating, while demand remained strong for call options with strikes from $82,000 to $100,000. Analysts pointed to $82,000 and $85,000 as the next resistance areas after the recent vertical advance.