Bitcoin has surged more than 25% over the past week, reclaiming the $80,000 level for the first time since mid-May and posting its strongest weekly advance in over three years. The move, which began in mid-August, has been fueled by a combination of macroeconomic catalysts, institutional inflows, and a cascade of short liquidations.
According to CoinGecko, BTC was trading near $80,300 on Aug. 25, up from roughly $64,000 seven days earlier. The bulk of the rally occurred between Aug. 19 and Aug. 21, with a subsequent push above $80,000 on Tuesday. The cryptocurrency briefly touched $81,000 before pulling back, and was up about 4% over the past 24 hours.
Macro tailwinds and institutional demand
The rally gained momentum after the U.S. Treasury Department announced on Aug. 19 that it would at least double the maximum size of liquidity support buybacks for longer-dated nominal Treasury securities. The change, effective Sept. 9, raises the cap for buyback operations in the 10-to-20-year and 20-to-30-year sectors from $2 billion to at least $4 billion per operation, with the higher limits in place through Nov. 4.
Following the announcement, long-term Treasury yields initially declined as investors weighed the potential liquidity impact of larger government bond purchases. Concerns over U.S. borrowing costs and fiscal deficits also weakened the dollar, boosting interest in alternative assets like Bitcoin and gold.
Institutional demand via U.S. spot Bitcoin ETFs added another layer of buying pressure. Data from SoSoValue shows spot Bitcoin ETFs recorded $1.92 billion in net inflows between Aug. 17 and Aug. 21, their strongest weekly intake in about 10 months. Inflows were positive all five sessions, including $606.3 million on Aug. 20 alone. BlackRock's IBIT accounted for $1.33 billion of the weekly total, while combined ETF assets rose to $96.07 billion.
Liquidations fuel the breakout
Leveraged traders also contributed to the upward momentum. More than $280 million in Bitcoin short positions were liquidated over 24 hours as BTC approached $80,000, forcing bearish traders to cover while the spot market moved higher.
Technical picture: bullish but stretched
Bitcoin's daily technical structure remains bullish, but several indicators suggest the move has become overextended. BTC was trading around $80,455, well above its 20-day, 50-day, 100-day, and 200-day exponential moving averages (EMAs) at approximately $70,505, $67,332, $67,655, and $71,854, respectively.
The reclaim of the 200-day EMA is significant, as BTC had traded below that long-term average since its June sell-off. Price now sits about 12% above the 200-day EMA, while the 20-day EMA has turned sharply higher. Trading volume expanded during the rally, with some of the largest daily volumes accompanying the green breakout candles. Chaikin Money Flow has climbed to 0.31, indicating strong buying pressure.
However, momentum is stretched. The 14-day Relative Strength Index (RSI) has reached 83.63, well above the conventional overbought threshold of 70, with its moving average near 63.96. This leaves BTC vulnerable to a short-term pullback or consolidation even as the underlying daily trend remains bullish.
Volatility has also risen, with the 14-day Average True Range climbing to around $2,260 from roughly $1,200 earlier in August. Daily price swings have nearly doubled, raising the possibility of larger moves in either direction around the $80,000 breakout.
Key levels to watch
Immediate resistance sits around $81,000 to $82,500, an area that includes the recent intraday high near $81,255 and the May swing highs. A daily close above $82,500 would open the door to $83,000, where additional short liquidations could add momentum if buyers maintain control.
The 24-hour liquidation heatmap from Coinglass shows liquidity clusters above the current price, concentrated around $81,500 to $82,000 and extending toward $83,000. Below the market, $80,000 is the first support to watch. A move back below it could bring $78,000 to $78,500 into play, with the largest visible liquidation concentration around $77,500 to $77,700.
A deeper correction toward that liquidity pocket would still leave BTC well above its major daily moving averages. The 200-day EMA near $71,854 and the 20-day EMA around $70,505 form the next major technical support zone if selling extends beyond the upper-$70,000 range.
For context, other cryptocurrencies have also seen notable moves. Solana's 27% rally on ETF inflows and governance votes highlights the broader risk-on sentiment, while Bitcoin SV's stalled breakout shows that not all digital assets are participating equally.
This article is for informational purposes only and does not constitute financial advice.
