Bitcoin's Rally Loses Steam as Price Hits Resistance

Bitcoin's price surged to $79,154 on August 31 before trimming gains and stabilizing in the $77k-$78k region. The cryptocurrency stabilized after last week's rejection from a three-month high of $81,455.

Analysts estimate that $80,000-$81,500 remains the key resistance zone for BTC in the near term, while $77,000 is the crucial support level to watch.

Nischal Shetty, Founder of WazirX, noted that China's manufacturing PMI improved to 49.8, while stronger Japanese production and retail sales supported economic confidence and crypto risk appetite. However, hawkish Jackson Hole signals raised September Fed hike expectations to 57 percent, lifting Treasury yields and the dollar.

Shetty warned that this could restrict liquidity, slow institutional capital rotation into Bitcoin and Ethereum, and increase pressure on altcoins. Higher oil prices also reinforced inflation concerns.