Bitcoin Pauses at $80,000, Spot Demand Key to Sustaining Rally

Bitcoin has paused near $80,000 after breaking out of its previous trading range. According to Bitfire Research, the token rebounded quickly from its lows and is holding near previous highs without a clear breakdown.

This shows some characteristics typically seen in the early stages of a bull market. However, it's too early to confirm the recent advance as the start of a new uptrend, as much of the rally was led by forced short liquidations rather than sustained spot buying.

The key question now is whether spot demand can take over as the market's main source of momentum. Bitfire Research pointed out that US spot Bitcoin exchange-traded funds have recently recorded net inflows of about $1.92 billion, and continued ETF inflows are a positive indicator.