Bitcoin ran into a wall on Tuesday. The largest cryptocurrency touched an intraday high of $81,265, its strongest level in more than three months, before being turned back near its 50-week moving average at roughly $81,085, according to CoinDesk. The price slipped under $80,000 soon after and traded near $78,500 on Wednesday as buyers took profits. The rejection landed after a week that saw bitcoin climb about 22%, from around $62,000 to the low $81,000s, on a mix of a short squeeze and steady exchange-traded fund demand.
A short squeeze happens when traders betting against an asset are forced to buy it back as the price rises, which adds more fuel to the move.
Key takeaways
- Bitcoin hit an intraday high of $81,265 on Aug. 25, then stalled at its 50-week moving average near $81,085 and fell back below $80,000.
- Spot bitcoin ETFs pulled in $337.56 million on Aug. 24, a sixth straight day of inflows, with BlackRock’s IBIT supplying about 62% of the total.
- CryptoQuant says a weekly close above bitcoin’s 365-day moving average, near $83,000, is needed to confirm a new bull market.
- A $6.4 billion bitcoin options expiry on Friday and the July PCE inflation report are the next catalysts traders are watching.
Published: August 26, 2026, 16:00 UTC
What is driving the rally
Two forces pushed bitcoin off its August lows. The first is macro. Rate markets have stayed volatile after the Scott Bessent-led U.S. Treasury Department promised to double its long-dated bond buyback operations, raising the maximum size from $2 billion to at least $4 billion per operation starting September 9. Lower yields and added liquidity have helped risk assets, and bitcoin’s correlation with gold recently hit a five-year high. Gold has climbed more than 6% over the same stretch to around $4,643.
The second force is fund flows. Spot bitcoin ETFs took in $337.56 million on Aug. 24, extending an unbroken run of inflows that has put real capital behind a rally that began as a short squeeze. The prior week set the 2026 record, with about $1.92 billion into bitcoin funds and $697 million into ether funds. BlackRock has led both sides. Its IBIT accounted for roughly 62% of one day’s bitcoin ETF inflow, while its ETHA supplied close to 78% of the day’s ether ETF haul.
The technical ceiling
The 50-week moving average is a long-term trend line that traders watch to gauge whether an asset is in a bull or bear phase. Bitcoin has spent months below it, so Tuesday’s rejection at that level matters. Sellers stepped in almost exactly where the average sits, and the pullback that followed lines up with what on-chain analysts had flagged: high unrealized profits and rising exchange inflows point to selling pressure after a fast run.
CryptoQuant told CoinDesk that bitcoin needs a weekly close above its 365-day moving average, currently near $83,000, to confirm an early bull market. Until then, the move from $62,000 reads as a sharp recovery rather than a confirmed trend change.
What comes next
Friday brings a $6.4 billion bitcoin options expiry that could amplify volatility in either direction as dealers hedge their positions. Traders are also waiting on the July PCE inflation report, the Federal Reserve’s preferred price gauge, which will shape rate-cut expectations that have underpinned the rally. Ether, meanwhile, has run into its own ceiling near $2,550 and traded around $2,450, up roughly 30% on the week but unable to clear resistance.
The setup leaves bitcoin caught between strong institutional demand and a technical wall. If ETF inflows continue and the PCE print cools, a push through $83,000 would strengthen the bull case. A hot inflation number or a heavy options expiry could just as easily send price back toward the mid-$70,000s.
Frequently asked questions
Why did bitcoin stall at $81,000?
Bitcoin was rejected near its 50-week moving average, a long-term trend line around $81,085. Sellers and profit-takers stepped in at that level, pushing the price back below $80,000 after an intraday high of $81,265 on Aug. 25.
How much money is flowing into bitcoin ETFs?
Spot bitcoin ETFs drew $337.56 million on Aug. 24, a sixth straight day of inflows. The prior week set a 2026 record with about $1.92 billion into bitcoin funds, led by BlackRock’s IBIT.
What would confirm a new bitcoin bull market?
Analytics firm CryptoQuant says bitcoin needs a weekly close above its 365-day moving average, currently near $83,000. A close above that level would signal a confirmed trend change rather than a short-term bounce.
Sources: CoinDesk, crypto.news, BeInCrypto. Related coverage: the short squeeze that started the rally, bitcoin topping $78,000, and this month’s flash crash.
