# Bitcoin Slips Below $78,000 After Early Gains

**Published:** 2026-08-31T08:53:21.605Z  
**Topic:** Bitcoin  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/54a22316-8e3f-4969-aed3-24e8c3a23c29

Bitcoin fell to $77,605, a 0.71% 24-hour decline, after hitting $79,154. US spot Bitcoin ETFs saw $201.9M in outflows, ending a nine-session inflow streak.

Bitcoin (BTC) dropped below $78,000 to trade at $77,605, a 0.71% decline over 24 hours, after briefly surging to $79,154 in early trading on August 31 [1]. This pullback follows a period of institutional inflows into US spot Bitcoin ETFs, which recently ended a nine-session streak with $201.9 million in net outflows on August 28 [1].

| At a glance | |
|---|---|
| Current Price | $77,605 [1] |
| 24-Hour Change | -0.71% [1] |
| Key Resistance | $80,000–$81,500 [1] |
| Key Support | $77,000 [1] |
| Primary Catalyst | US spot Bitcoin ETF outflows, macro uncertainty [1] |

## Price Action and Market Context
Bitcoin's recent move saw it touch $79,463 this week before losing nearly 3% from that peak [3]. Despite the dip, BTC is up 0.76% for the week [1]. The cryptocurrency had previously struggled to break past $65,000 before crossing the $80,000 threshold [2]. However, it has since traded around $78,075.19, reflecting a more than 2% drop in two days [2]. Bitcoin has historically spent limited time above $70,000, with only 12.7% of its recorded daily closing prices above this level [2].

The broader market sentiment, as measured by the fear and greed index, has shifted from "extreme greed" to "greed," dropping to 73 [1]. Trading volumes have been relatively subdued, suggesting that momentum is not yet decisive despite sustained institutional demand [1].

## Macroeconomic Factors and Institutional Flows
The recent volatility in Bitcoin prices coincides with several macroeconomic developments. The US Treasury's announcement to double its long-term bond buyback operations from $2 billion to $4 billion per session initially boosted sentiment across digital assets, as such liquidity injections have historically been positive for Bitcoin [3]. However, hawkish signals from Jackson Hole have increased expectations for a September Fed rate hike to 57%, which has lifted Treasury yields and the dollar [1]. This could restrict liquidity and slow institutional capital rotation into Bitcoin and Ethereum [1]. Higher oil prices have also reinforced inflation concerns [1].

The shift in institutional flows is evident, with US spot Bitcoin ETFs recording $201.9 million in net outflows on August 28, ending a nine-session inflow streak that had attracted approximately $2.8 billion [1]. Analysts note that profit-taking, exchange selling, derivatives positioning, and macro uncertainty can temporarily offset institutional purchases [1].

Bitcoin is currently positioned between the 50-week Exponential Moving Average (EMA) near $77,237 and the 100-week EMA around $78,451, a range that has proven difficult to breach [3]. The weekly Relative Strength Index (RSI) is near 56, indicating a healthy but not overheated bullish reading [3].

## What to watch
*   **Key Price Levels:** Monitor Bitcoin's ability to hold the $77,000 support level, as a break below could signal a deeper correction [1]. The $80,000–$81,500 range remains a key resistance zone [1].
*   **Federal Reserve Policy:** Traders are watching the Federal Reserve’s policy outlook, as uncertainty continues to influence risk assets [1].
*   **Institutional Flow Trends:** Observe future trends in US spot Bitcoin ETF inflows and outflows, as these flows significantly impact market momentum [1].

The interplay between sustained institutional interest and broader macroeconomic pressures, particularly around central bank policy and liquidity, continues to shape Bitcoin's near-term trajectory.

## Sources
1. Moneycontrol — [Bitcoin slips below $78,000 after early gains: Is the rally losing steam?- Moneycontrol.com](https://www.moneycontrol.com/news/business/personal-finance/bitcoin-slips-below-78-000-after-early-gains-is-the-rally-losing-steam-14018690.html)
2. Ambcrypto — ['Everyone’s scared' despite Bitcoin climbing past the $80K level - Here's why - AMBCrypto](https://ambcrypto.com/everyones-scared-despite-bitcoin-climbing-past-the-80k-level-heres-why/)
3. Coingabbar — [Why Are Bitcoin and Ethereum Prices Losing Steam While XRP Holds Up?](https://www.coingabbar.com/en/price-prediction/why-bitcoin-ethereum-prices-losing-steam-xrp-holds-up)

---
Cite as: TrendWatcher, "Bitcoin Slips Below $78,000 After Early Gains", https://www.trendwatcher.in/article/54a22316-8e3f-4969-aed3-24e8c3a23c29