Bitcoin (BTC) Slips Below $80K as Profit-Taking Halts Rally

Bitcoin (BTC) Slips Below $80K as Profit-Taking Halts Rally

Bitcoin (BTC) has slipped back below the $80,000 mark after failing to hold above that barrier, with profit-taking pressure intensifying following a rally that pushed the asset past $81,000 for the first time since May. The pullback comes after a sharp advance that began on Aug. 17, during which Bitcoin rose more than 20% before stalling near $79,000. Market data shows the cryptocurrency lost upward momentum as it approached that level, though buying pressure later emerged around $78,000. The price action aligns with the asset's performance since hitting an intraday high of $81,255 late on Aug. 24. After initially finding support above $79,500, that support level has since shifted down to $79,000, and each round of selling has produced lower lows, reinforcing the view that the rally is losing steam. As of 20:30 UTC, Bitcoin was trading at approximately $78,250, down about 1% on the day, according to recent market data.

Liquidations and Analyst Warnings

The pullback has also triggered a notable reduction in forced liquidations, with leveraged long positions bearing the brunt of the losses. Bitstamp data shows that Bitcoin liquidations exceeded $88 million over the past day, with long positions accounting for $77 million of that total. Across the broader cryptocurrency market, total liquidations surpassed $302 million, including $247 million in long positions and $55 million in short positions. The recent surge has drawn attention from observers who link Bitcoin's performance to U.S. Treasury actions, though there is no consensus on how long such measures can sustain the rally. Bybit's chief market analyst, Tan Han, acknowledged that the latest advance was triggered by a revival of the “monetary debasement trade” and amplified by a short squeeze, but he cautioned that Bitcoin still faces significant macroeconomic risks before the move can become a sustained bull market. He noted that the 50-week simple moving average is currently acting as strong resistance, and a return to the $82,500–$83,000 range would break through the breakeven point for many ETF investors, potentially attracting additional off-market capital.

Profit-Taking Signals and Market Structure

On-chain data also points to rising profit-taking among investors who entered the market during the recent upward wave. Analysis from XWIN Japan indicates that most categories of Bitcoin investors are now in profit as the price approaches $80,000, increasing the likelihood of selling pressure. The long-term holder SOPR ratio rose to 1.4 as Bitcoin neared $80,000, signaling increased profit-taking from this group, before later declining to 0.93 as short-term holders became the larger source of profit realization. CryptoQuant analysts suggest that the market's ability to absorb current selling will be the key factor in determining whether Bitcoin can resume its climb toward $88,000–$90,000. A breakout above $80,000 with sustained strength, combined with renewed demand for ETF and spot markets, could open the path toward that target. In contrast, the $75,000–$76,000 range remains the most important support zone, and a break below it could intensify selling pressure and weaken short-term holders' ability to realize profits. Another analyst, known as BorisD, notes that buying momentum has begun to fade at higher levels, with trading volume on Binance declining from roughly $1.17 billion during the move from $63,000 to $70,000 to about $350 million near $80,000.

Key Levels and Derivatives Positioning

COINOTAG's proprietary 42-indicator composite S/R scoring engine identifies the immediate resistance at $80,275, rated 78/100, driven by the confluence of the Fibonacci 0.000 level, Donchian Upper, and ATR Upper. On the downside, support at $77,632 is rated 81/100, supported by ATR Lower, a flip from resistance to support, Fibonacci 0.214, and S2. Derivatives data shows a funding rate of 0.0012%, open interest of $15.14 billion, and a long/short account ratio of 1.15, indicating a modestly long-biased positioning. The Fear & Greed Index stands at 65/100, reflecting greed. A break below $77,632 would invalidate the bullish thesis and open the door toward $75,041, while a sustained move above $80,275 could reignite momentum toward $87,657.