Bitcoin retreats below $78K as leveraged positions unwind

The cryptocurrency peaked at $81,238 on Tuesday, breaking a 10-week consolidation range, before sellers forced a 4.1% pullback to $77,870. Data from CoinGlass shows that the broader market saw $324.4 million in liquidations, with Bitcoin long positions accounting for roughly $109 million of that total. The exit of leveraged traders is further evidenced by a 4.5% decline in open interest from its recent peak, signaling that the market is shedding speculative weight rather than building aggressive short exposure.

Despite the price dip, spot demand has stayed resilient. US Bitcoin ETFs recorded $2.57 billion in net inflows over seven consecutive sessions, including $314.3 million on August 25 alone. Jeff Ko, chief analyst at CoinEx, suggests the market is transitioning away from a leverage-driven rally, noting that spot buyers must now lead the momentum. Analysts at Bitfinex anticipate a consolidation phase between $77,100 and $80,000, identifying the $77,800 to $78,000 zone as immediate support. To repair the bullish structure, Bitcoin must reclaim the $80,000 level, though broader macroeconomic factors—including rising 30-year Treasury yields and upcoming policy votes—remain potential headwinds for further institutional appetite.