Bitcoin Rally Hits Resistance at $81,000, Analysts Predict Pullback

Bitcoin's recent price rally has stalled after hitting resistance above $81,000. The cryptocurrency reached an intraday high of $81,265 on Tuesday before retreating to around $79,000 on Wednesday.

The rally was partly fueled by forced short covering, but some analysts believe the market may be due for a pullback. FOREX.com market analyst David Scutt warned that repeated failed breakouts were becoming difficult to dismiss, citing overbought daily momentum and emerging bearish divergence in the relative-strength index.

However, spot ETF inflows are still ongoing, with $2.5 billion pouring into US Bitcoin ETFs over the past week. This could provide a source of genuine demand even after leveraged shorts have been cleared.