Bitcoin's Short-Term Direction Hinges on Support at $77,000

Bitcoin's price slipped below $80,000 on August 29, sparking uncertainty over its short-term direction. The market is currently gauging whether it can hold onto the support level of $77,000 or face resistance at $80,000.

The pullback came after an intraday attempt to break above $81,000 on August 28 failed, and Federal Reserve Chair Kevin Warsh's remarks at Jackson Hole caused a shift in market-implied probability of a September rate hike. The $80,000 level, briefly reclaimed, turned back into resistance.

The weekend saw about 81,700 BTC of Bitcoin options expire on Deribit, with a notional value of around $6.44 billion. Spot bitcoin exchange-traded funds also halted inflows over the weekend, while trading continued in the institutional derivatives market. Whether Bitcoin can regain $80,000 is now key to determining its short-term trend.