Key Insights: Bitcoin price remains below $78,000 as long-term holders sell at an average loss of 20%. BTC price gets support from $1.61 billion in ETF buying over four days. The price of Bit
Bitcoin price stalled below $78,000 after a sharp move higher, while analysts warned that rising volatility could lead to more swings. Strong ETF demand has helped support the market even as some long-term holders sell at a loss.
Bitcoin price climbed to $77,600 before pulling back slightly, and it was trading around $77,178.62. The move came as some long-term holders sold their coins below their buying cost to raise liquidity.
Bitfinex, a well-known digital asset trading platform, tweeted that those coins changed hands at an average of 20% below their cost. Selling at a loss can put pressure on a rally by adding more supply to the market. However, the latest move has been different because strong demand has helped take in that supply.
Bitcoin Long-Term Holder Profit Analysis | Source: Bitfinex Spot Bitcoin ETFs recorded $307 million in net inflows on August 21, as the SoSoValue Bitcoin Spot ETF data confirms. This extended the streak of daily inflows to five days. The figures show that buyers have continued to enter the market even as some existing holders have chosen to sell.
Bitfinex also said Bitcoin ETFs bought $1.61 billion over four days. That level of demand has helped absorb coins coming from sellers who were willing to take losses.
As a result, the current BTC price move is being supported more by fresh demand than by a lack of selling. That could remain important if more long-term holders decide to sell while the market stays near recent highs.
Still, the latest move has not been free from risk. Market analyst Darkfost warned that the market is unlikely to move higher in a straight line. The analyst pointed to the amount of liquidity sitting below the current market level as a possible area that the price could revisit.
The warning comes after a sharp rise in liquidations. As per CoinGlass data, more than $1.6 billion was liquidated over a 24-hour period, including about $866 million in long positions and $797 million in short positions.
Bitcoin Price Volatility Analysis | Source: Darkfost Large liquidation figures often show how quickly traders are being caught on the wrong side of a move. With both long and short positions being cleared out, the market is showing signs of stronger price swings.
For the price of Bitcoin, this means a move above $78,000 may not happen smoothly. Buyers remain active, but traders are also facing a market where large positions can be forced out quickly.
That makes the area below $78,000 important in the short term for Bitcoin price. A strong break above the level could give buyers more room, while a pullback could test whether current demand is strong enough to keep supporting the market.
ETF flows remain one of the main points supporting the current market. On August 21, spot Bitcoin ETFs brought in $307 million, while spot Ethereum ETFs recorded $185 million in net inflows. Both markets extended their five-day streak of net inflows.
The continued demand for ETFs matters because it provides the market with another source of buying while some older holders are selling. In Bitcoin, this has helped offset the pressure from long-term holders selling below cost.
Spot Bitcoin ETF Inflow Outlook | Source: Wu Blockchain The BTC price was still below $78,000 in the latest data, showing that demand has not yet pushed the market through that level. However, the steady ETF inflows suggest buyers have not stepped away.
At the same time, the recent liquidation figures show that caution is still needed. A market can attract strong buying and still experience a sharp pullback when too much leveraged trading builds up.
For now, the Bitcoin price remains caught between strong ETF demand and rising volatility. The next move may depend on whether buyers can keep absorbing supply while traders deal with the large amount of liquidity below the market.
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