Bitcoin Surges to 15-Week Peak Above $81K, Hinges on Holding $80K

Bitcoin reached its highest price since mid-May on August 25, touching $81,257 before reversing to settle back toward $79,000. This marks a 15-week peak for the cryptocurrency and comes after a strong week of ETF inflows, with US spot Bitcoin ETFs taking in approximately $1.92 billion in the week ending August 21.

The rally is attributed to both a short squeeze and increased demand from ETF inflows. However, momentum readings are stretched, and the level has not been accepted yet, with daily RSI above 84 and the Money Flow Index near 77.22. Positioning also suggests enthusiasm at a 15-week high, which can lead to sharp pullbacks.

The continuation of the rally now depends on whether the market accepts $80,000 as support rather than treating it as a ceiling. Acceptance above $80,000 would open the $82,000 to $87,000 area, while failure there points back toward $75,500, the weekend low that buyers already defended once.