Bitcoin Surges 10% in a Day to Top $77,000, Hitting a Three-Month High

TradingKey - Bitcoin surged 10% to break through the $77,000 mark, hitting a three-month high with potential to extend its gains.

On August 21, Bitcoin (BTC) initiated a new wave of consensus, surging 10% today to break through the key $77,000 mark, trading at $77,124, setting a new three-month high. Over the past five days, Bitcoin prices have continued to soar, accumulating a gain of around 22% so far.

Recently, the U.S. Department of the Treasury expanded the government bond buyback limit to over $4 billion per operation, effectively pushing down Treasury yields and weighing on the U.S. Dollar Index (DXY). In addition, after the SEC passed the Crypto Asset Regulations to establish a registration exemption mechanism, compliance concerns for traditional financial institutions were resolved. This triggered another significant wave of large net inflows into U.S. spot ETFs, exceeding $1.1 billion in net inflows in just two days and accelerating Bitcoin's price advance.

Bitcoin Spot ETF Fund Flows This Week, Source: Coinglass

Currently, Bitcoin prices have officially exited the previous liquidity wait-and-see phase, entering a strong primary upward trend driven jointly by spot demand and institutional capital. In addition, total short liquidations across the network spiked dramatically. Forced market-order liquidation buys combined with spot FOMO sentiment rapidly squeezed short liquidity, driving the price quickly past $77,000.

Bitcoin Price Chart, Source: TradingView

Based on current market sentiment and BTC price action, after breaking through $77,000, structural overhead resistance from trapped positions has been largely absorbed. Technicals show strong price-volume concurrence, establishing a medium-term upward channel. According to CoinMarketCap data, today's Market Sentiment Index stands at 71, indicating that the market has entered a state of greed, though it has not yet reached extreme greed (above 80).

As long as the macroeconomic easing framework and spot ETF buying remain unchanged, after short-term consolidation and turnover, the market still possesses strong momentum to challenge $82,000. This marks the highest point of the rebound following this year's sell-off and lies near the 0.382 Fibonacci resistance level. However, investors should be mindful of short seller pushback around the $80,000 psychological level, which could trigger a brief, sharp pullback.