Bitcoin Pauses After 23% Weekly Surge, Slips Back to $79,000

Bitcoin slipped back to around $79,000 as traders took profits after the cryptocurrency surged 23% over the past week.

CoinDesk reported on August 26 that Bitcoin was trading around $79,000 during Asian morning hours, down about 1% from a day earlier. The move appeared to reflect short-term profit-taking after the token’s sharp weekly rally.

Most major altcoins also moved lower. XRP fell more than 4% from the previous day to around $1.44, though it remained up about 45% for the week, preserving one of the strongest gains among major cryptocurrencies. Solana dropped more than 3% to around $97, while Ether traded at about $2,465, down more than 1%. Dogecoin and BNB fell about 5% and 2%, respectively.

Longer-term market indicators, however, have improved. CryptoQuant’s Bull Score jumped to 80 from 30 in a week. That marked the highest level since October 6 last year, when Bitcoin was trading around $124,000. Eight of the 10 market and on-chain indicators tracked by the model were flashing bullish signals.

Demand indicators also strengthened. CryptoQuant said Bitcoin spot demand is showing its fastest monthly growth since late December last year. It is also the first time since early October last year that demand in both the spot and futures markets has expanded simultaneously.

Attention is now turning to major US economic data due this week and Federal Reserve Chair Kevin Warsh’s speech at Jackson Hole. The US is scheduled to release second-quarter gross domestic product data and the July personal consumption expenditures price index. Warsh is due to deliver his first keynote address since taking office on August 28 at Jackson Hole. Markets are currently pricing in about a 60% chance that the Fed will hold its benchmark interest rate steady at 3.50% to 3.75% in September.