Bitcoin slips below $78,000 after early gains: Is the rally losing steam?

Investors should avoid aggressive positioning while macro uncertainty remains elevated.

• Bitcoin surged to $79,154, then trimmed gains.
• BTC stabilized around $77k-$78k region.
• $80k-$81.5k is resistance; $77k is key support.

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Bitcoin surged $79,154 in early trade on August 31, but later trimmed some of those gains to trade just above $77,605 (09:42 IST), representing a 0.71 percent decline over the past 24 hours, and up 0.76 percent for the week.

BTC has stabilized after last week’s rejection from the $81,455 three-month high, suggesting buyers remain active around the $77,000–$78,000 region.

According to CoinSwitch, the broader backdrop remains constructive, supported by sustained institutional demand and an extended streak of US spot Bitcoin ETF inflows. "However, relatively subdued trading volumes indicate that momentum is not yet decisive."

Analysts estimate that $80,000–$81,500 remains the key resistance zone for BTC in the near term, while $77,000 is the crucial support level to watch.

Nischal Shetty, Founder of WazirX, noted that China’s manufacturing PMI improved to 49.8, while stronger Japanese production and retail sales supported economic confidence and crypto risk appetite. However, hawkish Jackson Hole signals raised September Fed hike expectations to 57 percent, lifting Treasury yields and the dollar.