Bitcoin Breaks $80,000 as Weekly Rally Pushes RSI Into Overbought Zone
Bitcoin pushed above $80,000 on Aug. 25 for the first time since mid-May, extending a broad crypto rally that has lifted the total market capitalization above $2.7 trillion.
Summary:
- Bitcoin has climbed more than 25% over seven days and reclaimed $80,000.
- Ethereum, Solana and XRP are outperforming BTC over the same period.
- The rally has been supported by renewed ETF demand and a weaker U.S. dollar.
- Bitcoin’s four-hour RSI above 77 signals strong but increasingly stretched momentum.
The move follows a powerful week of institutional inflows and dollar weakness after the U.S. Treasury expanded its long-dated bond buyback program, while technical momentum is now becoming stretched after BTC gained more than 25% in seven days.
Bitcoin Clears $80,000 as the Market Rally Broadens
Bitcoin was trading around $80,733 in the supplied market snapshot, up 4.33% over 24 hours and 25.61% over seven days. The move took BTC to its highest level in more than three months and lifted its market capitalization to approximately $1.62 trillion.
The rally is no longer confined to Bitcoin.
Ethereum traded around $2,512, gaining 32.31% over seven days. Solana reached approximately $101.72, up 34.16%, while XRP climbed 52.08% to around $1.51. Hyperliquid’s HYPE gained 36.28%, and Zcash remained the standout among the larger assets with a 67.21% weekly advance.
Bitcoin
$80,733
Ethereum
$2,512
XRP
$1.51
Solana
$101.72
BNB
$716.56
The breadth matters because Bitcoin’s market share is no longer absorbing all of the incoming capital. Several large-cap altcoins are rising faster, suggesting that money initially concentrated in BTC is rotating further along the risk curve.
Treasury Bond Buybacks Changed the Macro Trade
The rally accelerated after Treasury Secretary Scott Bessent announced an expansion of U.S. government bond buybacks, particularly in longer-dated securities.
Investors interpreted the move as evidence that policymakers were increasingly sensitive to elevated long-term borrowing costs. That contributed to weakness in the U.S. dollar and renewed demand for assets perceived as alternatives to fiat currency exposure, including Bitcoin and gold.
The mechanism is indirect.
Treasury bond buybacks do not inject money into Bitcoin markets in the same way as a central-bank asset purchase. Instead, buying back less-liquid Treasury securities can improve market functioning and influence conditions at the long end of the yield curve. If investors conclude that authorities will take increasingly active steps to contain financing stress, part of the adjustment can occur through the currency.
Bitcoin has benefited from that interpretation.
Reuters reported that BTC has gained roughly 28% during August, while the dollar’s weakness has revived the “debasement” trade that treats scarce assets as potential protection against declining purchasing power.
That framing also explains why gold and Bitcoin have moved in the same direction despite having very different investor bases.
ETF Demand Has Returned After Months of Weakness
Macro conditions provided the catalyst, but institutional flows have added buying pressure.
U.S. spot Bitcoin ETFs recorded approximately $1.92 billion in net inflows last week, their strongest weekly total in roughly ten months. BlackRock’s IBIT alone attracted about $1 billion during the week, including approximately $503 million on Friday, according to market data cited by Farside Investors.
That reversal is significant because ETF demand had been one of Bitcoin’s weakest areas earlier in 2026.
Spot ETFs matter mechanically because sustained inflows require authorized participants and market makers to source Bitcoin exposure for fund creation. When demand arrives during a market already dealing with leveraged short positions, the additional spot buying can intensify upward moves.
That appears to have happened during the latest breakout.
Liquidations Helped Turn the Breakout Into a Short Squeeze
The derivatives market amplified the initial move.
As Bitcoin accelerated through resistance levels accumulated during its summer decline, bearish leveraged positions were forced to close. Closing a short requires buying back the underlying exposure, creating additional demand precisely when the price is already rising.
The resulting feedback helped transform the move from the mid-$60,000s into a much faster advance above $75,000 and eventually $80,000.
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Liquidations have since moderated. The supplied market snapshot showed approximately $654 million in 24-hour liquidations, although that figure was up sharply from the previous day.
This distinction matters for the next phase. Early in the rally, forced buying from short liquidations provided substantial mechanical support. Once those positions have been cleared, further gains depend increasingly on new spot demand rather than traders being forced out of bearish positions.
Bitcoin’s Four-Hour Structure Remains Strong Above $77,870
Bitcoin chart shows a clear change in market structure following the Aug. 19 breakout.
BTC was trading around $80,830 on the four-hour chart, well above each moving average in the ribbon:
- 20-period SMA: $77,870
- 50-period SMA: $72,309
- 100-period SMA: $68,015
- 200-period SMA: $66,074
The ordering is technically constructive. Shorter-term averages sit above progressively longer-term averages, while all four are rising.
Price also consolidated between roughly $76,000 and $78,000 after the initial surge before breaking higher again on Aug. 24 and 25.
That creates a more durable structure than an uninterrupted vertical move because buyers defended the earlier breakout zone before pushing to another high.
The first meaningful support is now around $77,800-$78,000, where the 20-period average and recent consolidation overlap. A break below that area would not automatically invalidate the broader trend but would weaken the immediate momentum.
Below it, approximately $76,000 represents the next visible price-support area. The 50-period average near $72,300 is considerably further away, illustrating how extended BTC has become from its medium-term trend.
RSI Above 77 Is the Main Warning Sign
Momentum is strong, but it is no longer neutral.
The four-hour RSI stood at approximately 77.3, with its signal average near 71.4. That places Bitcoin firmly in overbought territory after the rapid weekly advance.
An RSI above 70 does not mean a reversal must follow. During strong trends, Bitcoin can remain overbought for extended periods while price continues rising.
What changes is the risk-reward of chasing the move.
BTC has advanced from roughly $64,000 to above $80,000 in less than a week, while the 20-period moving average remains below $78,000. The growing distance between price and the medium-term averages means even a routine consolidation could produce a noticeable percentage decline without damaging the larger bullish structure.
$80,900-$82,000
$77,800-$78,000
RSI 77.3
A sustained push above the recent high would put $82,000 into focus as the next nearby psychological level. The technical question is whether Bitcoin can achieve that while RSI remains elevated or whether the market first needs time to absorb the latest gains.
Altcoins Are Now Taking More of the Rally
Ethereum’s relative strength is one indication that the market is moving into a broader phase.
ETH has gained more than 32% over seven days, compared with Bitcoin’s 25.61%, while the ETH/BTC ratio recently produced a bullish golden cross. That technical development suggests Ethereum has started outperforming Bitcoin on a relative basis rather than simply following BTC higher.
Solana’s 34% weekly move and XRP’s 52% gain reinforce the same pattern.
This type of rotation typically becomes easier once Bitcoin stops absorbing nearly all incremental demand. A period of consolidation above a major BTC breakout can give traders more confidence to move toward assets with higher volatility.
The risk works in reverse as well. If Bitcoin loses the $77,800-$78,000 area sharply, altcoins that have outperformed during the rally can experience larger percentage drawdowns because their recent advances already reflect greater risk appetite.
That makes Bitcoin’s ability to hold the breakout relevant even for investors primarily trading ETH, SOL or XRP.
$80,000 Changes the Question From Breakout to Retention
Bitcoin no longer needs to prove that it can break above its summer trading range. It has already done that.
The next test is whether the market can retain capital above $80,000 once the short squeeze fades and technical momentum cools.
ETF flows offer one measurable signal. Five consecutive sessions of inflows helped support the latest advance, and continued institutional demand would provide a more durable source of buying than liquidations alone.
The macro side remains equally relevant. Bitcoin’s rally has been closely connected to a weaker dollar and expectations around Treasury policy, which means changes in yields or the currency can quickly alter the trade.
For the chart itself, the immediate sequence is clearer: $80,900-$82,000 is the first resistance area, while approximately $77,870 marks the short-term support that needs to hold if Bitcoin is to preserve the steep trajectory established over the past week.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Zdravkov
Reporter at CoinsPress
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
