Bitcoin surged past its previous trading range, hitting $79,400 as it broke out of a six-week consolidation between $62,000 and $67,000. The cryptocurrency traded at $77,161.80 after rising 0.30% in the last 24 hours. Weekly gains reached 22%, with daily trading volume up to $27 billion.
ETF inflows and spot demand increase
As Bitcoin rallied, spot and perpetual futures markets saw increased activity, especially on major cryptocurrency exchanges. This rise in demand from spot buying built confidence among traders and reduced concerns about the rally depending solely on derivatives-driven trading.
US-listed spot Bitcoin exchange-traded funds (ETFs) attracted $1.92 billion in net inflows over just five trading sessions. These inflows indicated substantial institutional buying, signaling that large investors supported the latest price move.
Net inflows to spot Bitcoin ETFs in the United States totaled $1.92 billion across five trading days, pointing to increased institutional demand and a key driver for the recent price strength.
Institutional participation through these products has played a crucial role in supporting the current uptrend. Consistency in ETF inflows reassured market analysts regarding the rally’s underlying strength.
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AAPLOn-chain data provided by CryptoQuant, a blockchain analytics platform, showed a sharp improvement in recent weeks. The cost basis for short-term holders stood at close to $68,500 as of August 19, and the True Market Mean was around $75,800.
Mini dictionary: CryptoQuant – A blockchain data analytics company providing on-chain metrics and market insights for digital assets, widely used by institutional investors and analysts.
Recovering above both levels typically signals improving confidence among short-term traders and is considered an early indicator of market structure reversal.
| Support/Resistance Level | Status as of August 21 |
|---|---|
| Short-term holder cost basis | $68,500 (recovered) |
| True Market Mean | $75,800 (recovered) |
| Prior resistance zone | $82,000–$83,000 (not cleared yet) |
Short squeeze and resistance remain in focus
The price breakout above $67,000 ignited a major short squeeze across the crypto derivatives market, resulting in about $3 billion in liquidated short positions. This intensified the price rally and pushed Bitcoin further upward than spot demand alone would have allowed.
The large-scale liquidation of roughly $3 billion in short positions contributed to the intensity of the rally, highlighting the power of forced buybacks in driving price volatility during trending markets.
Analysts compared the move to a previous rapid rebound earlier this year, when Bitcoin rallied from $60,000 to $82,000, ultimately failing to establish a sustained reversal. This historical context led many to remain cautious, noting that strong rallies do not always confirm lasting market shifts.
CryptoQuant’s team stressed the importance of holding support between $75,000 and $76,000 for a continued bullish outlook. Confirmation of a trend change would require a clear break above $80,000, while the next major test lies at the key resistance between $82,000 and $83,000.
According to CryptoQuant CEO Joo Ki-young, such rallies occurring near market lows may mark the end of a bear cycle. However, he warned that confirmation still relies on sustained demand and stability above critical cost basis levels. Previously, Joo had maintained a bearish stance until persistent positive data shifted his outlook.
