Bitcoin faces growing correction risks after failing to hold near the $80,000 resistance level and slipping toward $77,325. The pullback follows a rapid advance of more than $15,000 over a 48-hour period from the mid-$60,000 area, culminating in a price of $79,463 on Friday—its highest level since May. Despite a weekly gain exceeding 24%, the rapid surge has left late buyers vulnerable as momentum shows signs of exhaustion.
Whale Selling and Liquidations Test Resistance
Heavy selling by large Bitcoin holders, known as whales, has added significant supply near the $80,000 resistance zone. Blockchain tracking data highlights one unidentified address that disposed of 7,700 BTC worth $576.6 million over three days, including an additional 2,700 BTC sold on Saturday. Another wallet ending in bc1qqt sold 550 BTC for $39.43 million, locking in an estimated $4.5 million profit.
This large-scale distribution coincided with a wave of short liquidations that accelerated the initial rally. More than $4.3 billion in crypto short positions were liquidated between Wednesday and Friday, creating mechanical buying pressure that faded once leveraged bearish positions were closed.
Overbought Momentum and Shifting Sentiment
Technical indicators have flashed potential warning signs following the rapid repricing. Bitcoin's four-hour Relative Strength Index (RSI) reached 87 during Friday's push toward $79,700, while the Money Flow Index hit 100, placing both metrics deep in overbought territory. While strong trends can sometimes sustain elevated RSI readings, these levels indicate historically stretched short-term momentum.
Market sentiment has shifted dramatically alongside the price action. The Crypto Fear and Greed Index rose to 71, reflecting a state of greed compared to a reading of 34 and fear just one week prior. This 37-point weekly swing highlights a rapid transition from caution to enthusiasm.
Support Levels and Institutional Inflows
Counterbalancing the recent profit-taking, institutional demand through spot exchange-traded funds has remained robust. U.S. Bitcoin ETFs attracted $606.3 million on Thursday and approximately $1.61 billion for the week. Additionally, plans by the U.S. Treasury to double long-dated bond buybacks have contributed to lower yields and a weaker dollar, bolstering demand for scarce assets.
Market participants are closely monitoring key price boundaries. Initial support is situated between $75,000 and $76,000, with a broader retreat potentially targeting the $70,000 to $72,000 range. Sustained spot ETF inflows could absorb the ongoing whale supply, whereas a slowdown in demand would heighten the risk of a deeper correction below the $76,000 threshold.
