Why Bitcoin pulled back after $81,255
Bitcoin finally cleared $80,000 on Bitstamp, hitting $81,255 before giving most of it back. The daily candle opened near $78,985, settled around $79,121, and the session gain was only 0.17 percent. That is still the first trade above $80,000 since May, with the seven-day advance near 25 percent.
The fade is not unusual. Price ran into the same supply zone that capped the market in early May, between $80,000 and $82,000. A lot of buyers from that area had been sitting on losses for months. This week gave them a chance to exit near break-even, and that supply needs to be absorbed before Bitcoin can push higher.
There was also a mechanics problem. More than $220 million in short liquidations hit in 24 hours, which powered the final leg into $80,000. Liquidation-driven spikes tend to overshoot. When the forced buying stops, price drifts back to where actual demand sits.
The demand is still visible. US spot Bitcoin ETFs took in around $1.9 billion in net inflows for the week ending August 21, the strongest weekly intake since October 2025. BlackRock’s iShares Bitcoin Trust led the way. That is spot buying, not leverage.
The 200-day EMA reclaim matters more
The most constructive change is Bitcoin reclaiming its 200-day EMA, currently at $71,841. That line had rejected rally attempts for nearly three months. The breakout candle from the $62,277 area sliced through it in one session. As long as daily closes hold above it, the medium-term trend favors buyers.
Positioning also looks healthier. Coin-denominated open interest fell from about 353,500 BTC to 312,600 BTC during the rally, a drop of around 11 percent, while price gained over 20 percent. A rally that burns leverage rather than builds it has a better chance of lasting.
If Bitcoin clears $81,255, the first real test is a daily close above $82,000. The measured target beyond that sits near $88,000. Options traders are already leaning bullish; the 25-delta call skew has fallen to its lowest level of the year and turned negative at the front end.
Where support sits if the pullback deepens
Short-term support is $78,670. Below that, $74,450 and the 200 EMA at $71,841 are the next levels. One thing to remember: there is not much traded structure between $78,670 and $74,450. Price crossed that band in a single vertical candle, so any move lower could be quick.
Altcoins are moving, but not an altseason yet
Solana is up over 6 percent on the day, helped by five straight days of ETF inflows that pushed cumulative net inflows to a record $1.22 billion. XRP has had its strongest week since November 2024, roughly 50 percent higher. Ethereum is holding around $2,490.
The Altcoin Season Index, though, is still far from confirming a real rotation. Capital is concentrated in the largest names, especially those with ETF access. If Bitcoin goes sideways, the rally may broaden. If Bitcoin corrects hard, altcoins tend to fall faster. For now, the rotation is selective, not universal.
