Bitcoin shows signs of exhaustion after surging to near $80,000

Bitcoin's advance stalled near $80,000 following a surge of more than $15,000 in 48 hours from the mid-$60,000 range. The rally pushed the asset to $79,463 on Friday, its highest price since May, but sellers rejected the breakout and prices fell below $78,000. Bitcoin now trades near $77,325 with an intraday range between $76,400 and $78,763.

The pullback reflects signs of exhaustion after one of the strongest weekly advances in 2024, with a 24.27% weekly gain leaving late buyers vulnerable to further losses. Heavy whale selling during the approach to major resistance has added supply pressure. One unidentified address sold 7,700 BTC worth $576.6 million across three days, including 2,700 BTC for $211.8 million on Saturday. A separate wallet sold 550 BTC for $39.43 million, locking in an estimated $4.5 million profit.

Mechanical support from short covering—which liquidated more than $4.3 billion in crypto shorts from Wednesday through Friday—may fade as exchanges process those positions. However, spot demand provides a counterweight. United States Bitcoin ETFs attracted $606.3 million on Thursday and about $1.61 billion during the week, signalling institutional participation. The US Treasury's plan to increase long-dated bond buybacks could also support demand for scarce assets through lower yields and a weaker dollar.

The article notes that Bitcoin must hold the $75,000 to $76,000 breakout zone to prevent sellers from gaining short-term control. Momentum gauges present an additional warning, with historically stretched levels suggesting limited upside before a deeper correction becomes possible.