BTC Falls Below $79,000 Despite Eight-Day ETF Inflow Streak

Key Takeaways

• Bitcoin fell to around $78,700, down roughly 0.4%, as traders took profits following its rapid August rally.
• US spot Bitcoin ETFs recorded an eighth consecutive session of net inflows, taking total inflows during the streak to approximately $2.6 billion.
• A recovery above $79,600–$80,200 could reopen the path towards $82,000, while failure to hold $78,000 may expose lower support.

Bitcoin slipped below $79,000 on Thursday as its recent rally lost momentum, despite continued institutional demand through US spot exchange-traded funds.

The world’s largest cryptocurrency traded near $78,700, down approximately 0.4% on the day. Bitcoin moved between roughly $77,650 and $79,160 during the session after briefly reaching $81,237 earlier in the week—its highest level since mid-May.

Why Is Bitcoin Falling Today?

Bitcoin’s decline appears to be driven primarily by profit-taking following one of its strongest short-term advances of 2026.

BTC had gained around 25% in six sessions, while its August advance reached approximately 28%. The rally was supported by a weaker US dollar, improving liquidity expectations and renewed demand for alternative stores of value.

Such a rapid move also pushed momentum indicators into stretched territory. Bitcoin’s relative strength index recently climbed to 81.83, its highest level since March 2024. An RSI reading above 70 is generally considered overbought, although it does not guarantee that the price will reverse immediately.

Selling pressure has also emerged from large holders. Short-term holder whales reportedly realised around $1.2 billion in profits over three days, while an estimated 53,000 BTC moved onto exchanges. Higher exchange balances can indicate that more coins are available for sale, although transfers do not always result in immediate liquidation.

The pullback therefore looks more like a pause after a steep rally than a clear reversal of the broader recovery.

Bitcoin ETF Inflows Continue Despite Price Pullback

Institutional demand remains one of the strongest supportive factors for Bitcoin.

US spot Bitcoin ETFs attracted approximately $31.4 million in net inflows on 26 August, extending their positive run to eight consecutive trading sessions. The products collected roughly $2.6 billion during that period.

Daily inflows reached $606.3 million on 20 August, followed by $307.5 million on 21 August, $337.6 million on 24 August and $314.3 million on 25 August.

The latest $31.4 million total was considerably smaller than the previous sessions. Fidelity’s FBTC recorded $25.6 million of inflows, while Grayscale’s lower-fee Bitcoin product attracted $46.8 million. These gains were partly offset by a $50.4 million outflow from GBTC.

ETF inflows do not always translate into an immediate price increase. Bitcoin also trades across global spot and derivatives markets, where profit-taking, liquidations and changes in leverage can temporarily outweigh demand from regulated funds.

Nevertheless, a sustained inflow streak suggests that institutional investors have continued to add exposure even as Bitcoin consolidates below $80,000.

Weaker Dollar and Policy Expectations Support Bitcoin

Bitcoin’s recent advance above $80,000 was partly linked to renewed weakness in the US dollar.

The US Treasury’s plan to increase purchases of longer-dated government bonds helped calm long-term yields but placed additional pressure on the currency. This revived interest in the “debasement trade”, in which investors seek assets such as Bitcoin and gold as potential alternatives to traditional currencies.

Bitcoin also benefited from renewed optimism about US cryptocurrency regulation. Calls for Congress to establish clearer definitions and rules for the digital-asset sector helped strengthen sentiment across Bitcoin and crypto-related equities.

These developments lifted Bitcoin by approximately 16% in less than a week before cryptocurrency reached $81,237.94. The advance left BTC on course for its strongest monthly performance since November 2024.

Attention is now turning towards incoming US growth and inflation figures. Stronger-than-expected data could lift Treasury yields and the dollar, potentially creating pressure on Bitcoin. Softer data may reinforce expectations for more supportive monetary conditions.

Bitcoin Technical Outlook: Can BTC Recover $80,000?

The immediate technical focus is the $79,600–$80,200 region. This area has become an important resistance zone after Bitcoin repeatedly failed to maintain its position above $80,000.

A sustained recovery above $79,600 would indicate that buyers are regaining short-term control. Clearing $80,200 could then bring the recent high near $81,240 back into focus, followed by $82,000.

Above that level, the broader resistance zone between $82,800 and $83,000 may present a more significant test. A decisive close above this area would strengthen the case that the recovery is developing into a larger bullish breakout.

On the downside, $78,000 provides the first area to watch. Bitcoin briefly fell to approximately $77,650 during the latest session, making that level another near-term support.

A break below $77,650 could deepen the pullback towards $76,000 and the previous recovery zone near $75,500. Despite this risk, Bitcoin remains sharply higher over the past week, meaning the broader short-term structure has not yet been invalidated.

What Could Drive Bitcoin’s Next Move?

ETF demand is likely to remain an important indicator. Continued inflows would show that institutional investors are using price weakness to build exposure, while a return to sustained outflows could weaken confidence in the rally.

Traders will also monitor the US dollar, Treasury yields and upcoming economic data for clues about global liquidity conditions. Bitcoin has recently responded positively to dollar weakness, making any reversal in the currency an important short-term risk.

Finally, activity from large holders and derivatives traders could determine whether Bitcoin stabilises. Reduced profit-taking and lower leverage may allow the market to establish support, while further exchange inflows or long-position liquidations could extend the correction.

For now, Bitcoin is consolidating after a powerful rally. Reclaiming $79,600–$80,200 would improve the near-term outlook and reopen the path towards $82,000, while a break below $77,650 would signal that the pullback has further to run.