Bitcoin's Rally Falters as $82K Resistance Mounts
Bitcoin's brief surge past $82,000 on September 3 was met with selling pressure as it encountered resistance at its 365-Day Moving Average of $82,268. The rally stalled just shy of this level before a minor pullback occurred.
CryptoQuant reported that historically, bull runs have begun once the 365DMA is breached. However, onchain metrics showed signs that the Bitcoin rally might be cooling, with reduced expectations of a September rate hike due to Federal Reserve Governor Christopher Waller's comments in support of keeping interest rates steady.
Despite $730.8 million in net inflows into spot Bitcoin ETFs on Thursday, worrisome news for Bitcoin bulls included a reduction in the Apparent Demand metric, which tracks the difference between newly-mined BTC issuance and the change in supply inactive for over a year. This showed less demand, reflecting stalling accumulation near key swing resistance levels.
A positive Coinbase Premium Index indicates increased demand from U.S.-based investors, but this metric has slumped once again. The Bitcoin Capital and Flow Regime Index has been at its maximum level for six consecutive days, according to crypto analyst Axel Adler Jr., which in a bear market regime has been followed by a price decline.
May's $82,850 swing high remains another obstacle for bulls, with August's gains improving Bitcoin's price structure but weakening demand around $82k potentially triggering a deeper retracement. A break below $75.5k could expose $70.2k, followed by $66.9k.