Bitcoin is approaching a key short-term decision point after a powerful rally carried prices above a weekly fair value gap that had capped the market since June. BTC traded near $76,712 on August 21 before reaching roughly $77,979 in follow-on trading, only to pull back toward $76,940 as intraday momentum weakened.
The upside move was supported by substantial institutional demand. Spot Bitcoin ETFs recorded $606.29 million in net inflows on August 20, the largest single-day intake since May 1. At the same time, short sellers suffered roughly $4 billion in losses over four days, marking what was described as the largest liquidation streak in crypto history.
Despite the bullish structure, analyst Jesse Olson identified a bearish divergence on Bitcoin’s one-hour chart after the rally from about $64,000 to above $79,000 stalled. The subsequent 1.9% hourly decline makes $76,000 initial support. A decisive break could expose the $73,500, $72,000 and $69,500 zones, while a move back above $78,000 and then $79,000 would weaken the bearish setup.
Longer-term projections remain substantially higher if Bitcoin extends its recovery. More Crypto Online charted upside Fibonacci extensions near $162,346 at the 61.8% level, $230,544 at 78.6%, $360,388 at 100%, and $589,837 at 123.6%. A deeper correction would bring lower supports into focus, starting near $56,858 and extending toward $24,385. With President Trump scheduled to speak in South Carolina on Friday, traders are watching whether Bitcoin can absorb breakout liquidity before that catalyst.
