Bitcoin Price Drops Below $79,000 as Rally Loses Steam
Bitcoin's recent rally appears to be losing steam as the price dropped below $79,000 on August 27. Over the past 24 hours, BTC has traded near $78,700, down around 0.4% from its previous value. This pullback follows a rapid rally that pushed Bitcoin up over 23% in just one week.
The move above $80,000 was supported by a weaker US dollar and demand linked to concerns over currency debasement. However, as the price reached new highs, leverage started working against traders who had opened long positions during the climb. When Bitcoin failed to hold $80,000, long liquidations added to spot selling.
CryptoQuant has flagged elevated unrealised profits and increased exchange inflows following the rally, leaving more coins available to be sold if holders take profits. At the same time, US spot Bitcoin ETFs recorded $314.37 million in net inflows on August 25, extending their run to seven consecutive sessions.
Traders are now looking towards August 28, when around 81,700 Bitcoin options worth $6.44 billion are scheduled to expire on Deribit at 08:00 UTC. The daily chart still carries a bullish trend structure despite the two-day pullback, although momentum indicators show the rally has become stretched.