Bitcoin Price Dips, Weakening Momentum Warrants Caution

The price of Bitcoin dipped slightly on August 27, falling just below $78,296 in early trade before recovering some losses. It is currently trading at $78,919, a 0.19% decline over the past 24 hours but up 14.47% for the week.

Crypto analysts believe that BTC holds above its 50-day and 200-day EMAs, but weakening momentum warrants caution. Support lies near $77,489, while a decisive break above $82,850 could open a path towards $89,663.

Nischal Shetty, Founder of WazirX, estimates that lower oil and subdued volatility could become supportive if markets continue to expect softer inflation and easier monetary policy. Meanwhile, institutional demand remains strong with US spot Bitcoin ETFs recording approximately $2.57 billion of net inflows across seven consecutive sessions.