Bitcoin consolidated near $80,000 on Friday after touching an intraday high of $81,280 as buying momentum remains strong. According to The Economic Times, the cryptocurrency was trading at the $79,612 mark, up 1.1% in the past 24 hours. In the past week, Bitcoin and Ethereum are up 6.9% and 6.2%, respectively, with major altcoins rallying up to 19.8%. Ethereum was down 0.2% to trade at the $2,485 mark, while among the major altcoins, BNB, XRP, Solana, Tron, Hyperliquid, Dogecoin, and Cardano rallied up to 5.7% in the recent session. The global crypto market capitalisation edged down 2.57% to $3.07 trillion, according to Coingecko, indicating broader market consolidation despite Bitcoin's strength.
Bitcoin's Supply in Profit reached 14 million BTC at press time, indicating widespread unrealized gains across the market. According to AMBCrypto, this coincided with the chart's Liquidity Accumulation level, a historically significant zone that has influenced Bitcoin's recovery patterns. Bitcoin last entered this zone in January but failed to move above it, subsequently falling from $95,000 toward $60,000 in February. By contrast, Bitcoin remained above the Liquidity Accumulation level from October 2023, which preceded its 2024 all-time high. Continued accumulation could support the rally, but profit-taking among 14 million profitable BTC could create significant selling pressure. The Bitcoin's Coinbase Premium Index has turned positive for the first time in over three months, suggesting that the buying pressure from U.S. investors has increased significantly.
Institutional participation remained critical as Bitcoin exchange-traded funds recorded $3.51 billion in August inflows, according to SoSoValue. According to AMBCrypto, BlackRock recently acquired 3,260 BTC, while Bitcoin's Spot Market Netflow remained negative for three consecutive days with cumulative Netflows reaching approximately -$261 million. Such movements could reduce immediately available selling supply and align with a broader decline in Exchange Reserves, which fell from 2.735 million Bitcoin on August 15 to 2.707 million BTC. Analysts said sustained ETF inflows, a softer dollar, improving regulatory sentiment, and institutional demand are supporting the rally. The recovery has brought Bitcoin back to the edge of an important resistance cluster after this week's consolidation, with Bitcoin's broader structure remaining positive.
Bitcoin faces resistance around $80,800-$83,300, with experts advising caution near key resistance levels. According to The Economic Times, CoinSwitch Markets Desk noted that BTC is nearing a key $80K–$82K resistance zone, where almost 8% of BTC's supply was previously acquired, with around 5% of total supply sitting near $80K alone. Vikram Subburaj from Giottus said the recovery has brought Bitcoin back to the edge of an important resistance cluster after this week's consolidation, with $78,000 remaining the immediate support area, while $80,800-$83,300 is the key zone Bitcoin must clear to extend the rally. The Bitcoin maintains market leadership with 59.8% dominance, while Ethereum accounts for 11.2% and other assets 29%, according to Nischal Shetty from WazirX. Implied volatility is higher for Ethereum at 59.43, compared with Bitcoin's 43.24, suggesting greater expected ETH price swings ahead.
The U.S. Treasury's announcement to buy back more long-dated bonds to help cap long-end yields has led to the U.S. dollar bearing the brunt of investor angst. According to Reuters, Treasury Secretary Scott Bessent's messaging has reinforced the market's view that U.S. policymakers may have a lower tolerance for a further rise in long-end yields through the midterm elections. The action stoked increased chatter around the so-called debasement trade, where moves to prevent long-end yields from reaching market-clearing levels via buybacks lead the pressure to shift from the bond market to the currency market. Tim Sun, senior researcher at HashKey Group, said Bessent's messaging has reinforced the market's view that at least through the midterm elections, U.S. policymakers may have a lower tolerance for a further rise in long-end yields, creating a relatively supportive macro backdrop for assets such as bitcoin and gold. The Treasury said on Aug. 19 that it would at least double the maximum size of liquidity-support buybacks for 10-to-20-year and 20-to-30-year nominal Treasuries, raising them from $2 billion to at least $4 billion per operation, with larger operations scheduled to begin Sept. 9 and continue through the current refunding quarter.
