Bitcoin Price Drops Below $79K Amid Elevated Leverage and Liquidity Concerns

Bitcoin's recent rally hit a roadblock as it dropped from above $79,000 to $77,000 in a sharp sell-off. The move triggered around $547 million in crypto liquidations before buyers stepped back in.

The pullback has raised concerns that the recent rally could face another correction, particularly with leverage remaining elevated. Analysts point out that Bitcoin's failure to break above $79,000 leaves it vulnerable to further declines.

However, continued demand for U.S. spot Bitcoin ETFs provides support for BTC. Net inflows of $307.45 million on August 21 extended their inflow streak to five consecutive days.

Analyst P4 Provider has identified $79,000 as an important resistance level and predicts that the price could drop to as low as $71,000 or even $70,000 if selling pressure increases.