Bitcoin Price Slams Into $79K Wall as Rally Momentum Starts Fading

This price action appeared to be consistent with how the asset has performed since peaking at $81,255 late on Aug. 24. However, while it initially found support above $79,500, the cryptocurrency has seen that level decline to $79,000.

According to market data, the digital asset failed to breach the threshold after 5:00 a.m. EST, getting only as high as $78,830. In contrast, each wave of sell-offs has left the price of bitcoin with lower lows, supporting the notion that the rally is losing steam.

Bitcoin Liquidations Ease as Long Bets Take the Bigger Hit

Meanwhile, bitcoin’s price action over the last day resulted in significantly reduced liquidations, with leveraged long bets accounting for the larger chunk. According to Bitstamp data, liquidations on bitcoin topped $88 million, with wiped-out long bets reaching $77 million. This trend was consistent across the broader cryptocurrency market, where total liquidations surpassed $302 million, split between $247 million in leveraged longs and $55 million in short bets.

Days after the price spike, many observers, including high-profile figures like BitMEX founder Arthur Hayes, have tied the cryptocurrency’s performance to actions by the U.S. Treasury. Still, there is no consensus as to how long bond buybacks will sustain bitcoin’s upward trajectory. While Hayes sees this as the beginning of a bull run, others, such as Han Tan, chief market analyst at Bybit, remain cautious.