Bitcoin retakes US$80,000 as choppy US demand tests rally

Bitcoin reclaimed the US$80,000 mark after a volatile market tested its upward momentum. Analysts noted that long-term holders had a price target of between US$83,000 and US$86,000, which could act as a ceiling for the cryptocurrency. Bitcoin surged nearly 5.7% on Thursday, fueled by rising stock prices, falling Treasury yields, and a weakening US dollar following comments from Federal Reserve official Christopher Waller about potential interest rate stability.

The jump brought Bitcoin to its highest level since May, though it still resides within its recent trading range. The rally presents another opportunity for Bitcoin to hold a level it has struggled to maintain. However, US investor demand for Bitcoin remains uneven, with inflows into US-listed spot Bitcoin ETFs becoming inconsistent, including two days of significant outflows in the past week.

The seven-day average of Coinbase premium, comparing US exchange prices to international platforms, has been negative for over four months. Research analysts suggest that confirmation of a breakout from the range Bitcoin has been trading in since August 2 requires higher time frame confirmation alongside continued positive ETF flows.

Despite mixed signals, Bitcoin's seven-day average intake for ETFs reached US$290 million daily during the rally, but trading activity was subdued compared to previous bull markets. A sustained move above US$82,000, backed by persistent ETF inflows and restrained funding, would provide stronger confirmation of a market move beyond recent consolidation.

Analysts warn that Bitcoin faces a potential price ceiling, estimating that long-term holders are targeting the US$83,000 to US$86,000 range for sales. Mixed signals leave Bitcoin caught between a positive market backdrop and doubts over the sustainability of the recent buying surge.