Bitcoin's Rally Fizzles as Price Slips Below $80,000

Bitcoin's recent rally cooled off as it slipped below $80,000 on Tuesday. The flagship cryptocurrency reached an intraday high of $81,265 before losing momentum and closing at $78,526.

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

However, traders are assessing whether this latest rally is a sign of a sustained uptrend or just a temporary push. Analyst Ted Pillows noted that Bitcoin has developed a bearish divergence on the four-hour chart, suggesting a correction towards the $72,000-$74,000 zone may be imminent.