--- title: "Bitcoin Taps $79,000, Up 20% Since Monday. So Why Should Bulls Be Careful?" type: "News" locale: "en" url: "https://longbridge.com/en/news/296615271.md" description: "Bitcoin surged 20% to $79,000, driven by short liquidations and Trump's pro-crypto remarks. However, analysts caution that U.S. spot demand remains unconfirmed as the Coinbase Premium Index stayed negative. Additionally, while dollar-denominated open interest rose, BTC-denominated open interest fell, indicating traders closed positions rather than adding leverage. Despite strong ETF inflows, key indicators suggest the rally may lack fundamental strength." datetime: "2026-08-21T11:54:18.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296615271.md) - [en](https://longbridge.com/en/news/296615271.md) - [zh-HK](https://longbridge.com/zh-HK/news/296615271.md) generator: "portal-rs" --- # Bitcoin Taps $79,000, Up 20% Since Monday. So Why Should Bulls Be Careful? **Bitcoin** (CRYPTO: BTC) is up 20% this week, but questions remain whether the rally is driven purely by short liquidations or returning U.S. spot demand. ### **Two Indicators Yet to Confirm Strength** CryptoQuant market commentator Axel Adler Jr. said Friday that two key indicators have yet to confirm the strength of the latest rally. The Coinbase Premium Index, which compares BTC prices on Coinbase with Binance, remained negative throughout the advance. While improvement from -0.11 to -0.046 signals stronger U.S. demand, it never crossed into positive territory. This implies American spot investors have participated in the recovery but have not been its primary driver. A move above zero in the Coinbase Premium would be the stronger confirmation. Secondly, dollar-denominated open interest increased 11.7% to $25 billion as Bitcoin rallied. However, measured in BTC, open interest declined 8.7%, falling from 366,000 BTC to 334,000 BTC. The divergence indicates traders were closing existing positions rather than aggressively adding fresh leverage. While Adler sees that as constructive for market structure, he believes “price is rising faster than new positions are being built.” ### **Then What Sparked the BTC Rally?** Bitcoin advocate and podcast host Scott Melker offered a three-part explanation for Bitcoin’s breakout in his Thursday livestream. First, Treasury’s decision to buy back long-dated bonds provided the initial catalyst. Then, liquidation of excessive leverage amplified the move, while President **Trump’s** pro-crypto remarks added another tailwind. Nearly $3 billion in short positions were liquidated over 24 hours as BTC surged past $71,000, providing the “gasoline” that accelerated the rally. Spot Bitcoin ETFs provided additional support, recording $517.19 million in net inflows (on Aug.19), their strongest showing in almost 3.5 months. As of Aug. 20, net inflows spiked to $606.3 million. *Image: Shutterstock* ### Related Stocks - [GBTC.US](https://longbridge.com/en/quote/GBTC.US.md) - [ARKB.US](https://longbridge.com/en/quote/ARKB.US.md) - [FBTC.US](https://longbridge.com/en/quote/FBTC.US.md) - [IBIT.US](https://longbridge.com/en/quote/IBIT.US.md) - [BITB.US](https://longbridge.com/en/quote/BITB.US.md) - [BITO.US](https://longbridge.com/en/quote/BITO.US.md) - [BRRR.US](https://longbridge.com/en/quote/BRRR.US.md) - [BTCO.US](https://longbridge.com/en/quote/BTCO.US.md) - [BTCW.US](https://longbridge.com/en/quote/BTCW.US.md) - [HODL.US](https://longbridge.com/en/quote/HODL.US.md) - [EZBC.US](https://longbridge.com/en/quote/EZBC.US.md) - [03008.HK](https://longbridge.com/en/quote/03008.HK.md) - [03042.HK](https://longbridge.com/en/quote/03042.HK.md) - [03430.HK](https://longbridge.com/en/quote/03430.HK.md) - [BTCE.DE](https://longbridge.com/en/quote/BTCE.DE.md) - [COIN.US](https://longbridge.com/en/quote/COIN.US.md) ## Related News & Research - [Amboss Opens Affiliate Program: Earn Recurring Bitcoin Commissions by Growing Bitcoin Payments](https://longbridge.com/en/news/296124824.md) - [Fundstrat Sees 30% Swing In Bitcoin’s Price](https://longbridge.com/en/news/296239209.md) - [Bitcoin Standard Treasury Company (BSTR) Terminates Business Combination, Team Continues Pursuing Active Bitcoin Treasury Management | CEPO Stock News](https://longbridge.com/en/news/296540800.md) - [Paul Tudor Jones Is Buying Bitcoin ETF IBIT Again — But His Trade Has Changed](https://longbridge.com/en/news/296136074.md) - [Bitcoin lands on the same custody rails Citi uses for equities and bonds](https://longbridge.com/en/news/296272222.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**