Bitcoin Stuck Below $80K as Institutional Demand Fails to Spark Breakout

Bitcoin has been stuck in a narrow range between $78,000 and $80,000 for days, despite strong institutional demand and sustained inflows into spot Bitcoin Exchange-Traded Funds. The leading cryptocurrency by market cap is down around 1% in the last 24 hours.

The US spot Bitcoin ETFs recorded $1.13 billion in net inflows between Monday and Thursday, with data from SoSoValue suggesting they are on track for their second consecutive week of inflows exceeding $1 billion. This indicates institutional investors are rebuilding exposure to BTC.

Analysts consider a close above the 365-day moving average near $83,000 crucial for confirming a broader shift into a new bull-market phase. However, the recent performance comes after the US inflation data provided a mixed macroeconomic backdrop for Bitcoin, with markets increasing their expectations of a September interest rate hike.

The BTC/USD 4-hour chart remains bearish and efficient, but the daily and weekly charts indicate a bullish scenario. The 4-hour RSI is within the overbought level at 71, while on the weekly chart it stands at 58, firmly above its neutral level of 50.