Bitcoin extended its powerful recovery on Monday, Aug. 24, briefly climbing above $79,000 as buyers continued to build on last week’s strong rally. The move pushed BTC toward a key resistance zone around $80,000, where sellers have so far limited further gains.
Bitcoin was trading near $79,406 at its intraday peak, marking a gain of about 2.5% over 24 hours and more than 24% over seven days.
Key developments
- Bitcoin has gained more than 24% in one week, supported by strong demand for U.S. spot ETFs.
- U.S. Bitcoin ETFs attracted approximately $1.9 billion to $2 billion last week, their strongest weekly performance since October 2025.
- BTC encountered resistance around $79,406, with the psychologically important $80,000 level now in focus.
- Heavy derivatives activity and liquidations have amplified the latest price move.
- Traders are watching upcoming Federal Reserve policy signals and other macroeconomic developments for the next major catalyst.
Bitcoin Momentum Accelerates
The latest move represents a continuation of Bitcoin’s sharp weekly recovery.
Technical indicators are showing strong momentum, although they are also pointing to increasingly overbought conditions. Bitcoin’s daily Relative Strength Index has moved into the 79–82 range, while the Moving Average Convergence Divergence indicator remains firmly bullish.
Bitcoin reached approximately $79,406 on Bitstamp before encountering selling pressure. Despite the pullback from that level, buyers continued to defend the $79,000 area.
Trading volume remained relatively moderate at around $36.76 billion over 24 hours, while Bitcoin futures open interest reached approximately $57.57 billion, highlighting the significant amount of capital currently positioned in derivatives markets.
ETF Demand Provides a Major Tailwind
One of the most important drivers behind Bitcoin’s latest advance has been renewed demand for U.S. spot Bitcoin ETFs.
Bloomberg senior ETF analyst Eric Balchunas highlighted the strength of the latest flows, noting that Bitcoin ETFs attracted nearly $2 billion during the previous week.
The inflows represented the strongest weekly performance for the products since October 2025, when Bitcoin was also experiencing a major price surge.
The renewed ETF demand is significant because it provides traditional investors with regulated exposure to Bitcoin without requiring them to directly hold the cryptocurrency.
The combination of strong ETF inflows and constrained Bitcoin supply can create additional upward pressure when demand accelerates.
Treasury Policy and Leverage Add Fuel
Bitcoin’s rally has also coincided with developments in the broader financial markets.
The U.S. Treasury recently announced plans to increase the size of its longer-dated debt buyback operations, covering securities with maturities ranging from approximately 10 to 30 years.
The move contributed to a broader improvement in risk sentiment as longer-term yields initially declined.
Leverage in cryptocurrency derivatives markets has also amplified Bitcoin’s latest advance. Billions of dollars in leveraged positions have reportedly been liquidated during the broader rally, with both short and long positions affected as prices moved rapidly.
On Monday alone, approximately $337 million in crypto derivatives positions were liquidated, including around $66.4 million in Bitcoin short positions.
Short liquidations can accelerate an upward move because exchanges forcibly close bearish positions, creating additional buying pressure.
$79,406 Becomes the Immediate Test
Bitcoin’s move above $79,000 has brought the $79,406 area into focus as an immediate resistance level.
After touching that level, BTC pulled back toward the upper-$78,000 range before buyers pushed it back above $79,000.
The larger psychological hurdle remains $80,000. A sustained breakout above that level could strengthen bullish sentiment and potentially open the way toward higher resistance zones.
However, Bitcoin’s elevated RSI indicates that the market is already stretched in the short term. A failure to clear $80,000 could therefore trigger profit-taking or a deeper correction.
Fed Decision and Macro Risks Ahead
Traders are also preparing for several macroeconomic catalysts that could influence Bitcoin’s next move.
The Federal Reserve’s September interest-rate decision will be closely watched, while the Jackson Hole central banking symposium could provide additional clues about the direction of U.S. monetary policy.
Geopolitical developments, including tensions between the United States and Iran and events surrounding the Strait of Hormuz, could also affect broader risk sentiment.
Any significant shift in rates, liquidity expectations or geopolitical conditions could create substantial volatility across cryptocurrency markets.
Bulls See a Bigger Move Ahead
Despite the resistance around $79,400 to $80,000, some Bitcoin advocates believe the current move could develop into a much larger cycle.
Strive CEO Matt Cole has argued that Bitcoin’s performance relative to gold is strengthening the case for another powerful cycle. He points to increasing demand for scarce assets in an economy increasingly shaped by artificial intelligence and abundant digital production.
The Bitcoin-to-gold ratio is another metric he believes could indicate that BTC is regaining relative strength among scarce assets.
For now, however, Bitcoin faces a clear technical test.
The cryptocurrency has recovered rapidly from its recent lows and gained more than 24% in seven days. Whether that momentum can carry BTC decisively through $79,406 and the $80,000 barrier will determine whether the latest rally is entering another phase or beginning to encounter stronger profit-taking.
