Bitcoin's $79K Surge Tests Overbought Limits Amid Violent Short Squeeze

Bitcoin has surged by nearly 22% over the past week to trade near $79,140 as of August 24, 2026. This rapid price increase is testing the limits of what a trend can absorb before a correction occurs.

The daily structure of Bitcoin's price movement is unequivocally bullish, with the price trading well above all three EMAs and expanding momentum. However, the same chart flashes an overbought RSI at 82.32, a level historically associated with at least a pause or pullback.

A Treasury buyback operation triggered a violent short squeeze that accelerated the rally, according to Fortune. This forced covering, rather than gradual accumulation, explains the speed and intensity of Bitcoin's roughly 22% weekly advance.