Bitcoin's Rally Cools Down as it Slips Below $80,000

Bitcoin's rally cooled down as it slipped below $80,000 after reaching an intraday high of $81,265. The flagship cryptocurrency failed to sustain momentum and pulled back below $80,000 to settle at $78,526.

The rally was supported by several factors, including a weaker dollar following the US Treasury's announcement to double bond buybacks and sustained ETF inflows. According to CoinGlass data, Bitcoin ETFs recorded $337.60 million in inflows on Monday and $314.30 million on Tuesday, extending their inflow streak to seven days.

Despite the pullback, BTC is trading above key levels on the daily chart, including the 200-day SMA. Analyst Daan Crypto Trades noted that BTC must stay above $80,000 to confirm a bullish scenario and identified the $77,500-$78,000 area as a key level.