Bitcoin stalls at $79K as rally loses steam

Bitcoin traded between $77,000 and $79,000 on Wednesday and did not close above $79,000 after a rally of more than 20% since Aug. 17. The token reached $81,255 on Aug. 24 and has since recorded lower highs and lower lows.

Data showed bitcoin reached $78,830 after 5:00 a.m. EST but was unable to sustain a move above $79,000. Earlier in the week it had found support above $79,500; that level slid to $79,000 as each pullback left the market at progressively lower levels. By 4:30 p.m. EDT, bitcoin traded just above $78,250, down about 1% on the day.

Exchange data from Bitstamp put bitcoin liquidations for the 24-hour period at more than $88 million, with roughly $77 million coming from leveraged long positions. Across the wider cryptocurrency market, total liquidations exceeded $302 million, about $247 million in wiped long bets and $55 million in shorts.

Some market participants linked recent price moves to U.S. Treasury bond buybacks. Arthur Hayes, founder of BitMEX, described the price action as the start of a bull run. Other analysts expressed caution about the durability of the rise.

Han Tan, chief market analyst at Bybit, noted that “BTC bulls must next overcome the 50-week simple moving average that exerted strong resistance today.” He added that a return to the $82,500-$83,000 band would surpass breakeven levels for many ETF investors and could attract additional inflows.

Tan identified two macro risks that could reverse gains: more nuanced comments from Treasury Secretary Scott Bessent on a so-called “Treasury twist” and a potentially hawkish tone from Federal Reserve Chair Kevin Warsh at Jackson Hole.

Traders are watching the 50-week simple moving average, ETF breakeven levels around $82,500-$83,000 and upcoming macro speeches for signals on liquidity and risk appetite.