Key Points
Bitcoin jumped over 24% in a week, breaking above $78,000.
$2.7 billion in crypto shorts were liquidated, fueling the rally.
Bitcoin ETF inflows reached $1.61 billion across four sessions.
$80,000 is the next major test, with $77,000 as near-term support.
Bitcoin surged more than 24% in the week ending August 24, 2026, pushing above $78,000 as bullish momentum returned to the crypto market. The sharp move also triggered around $2.7 billion in short liquidations, adding further buying pressure. With Bitcoin now nearing the $80,000 level, investors are watching whether fresh demand can keep the rally going or whether profit-taking will slow it down.
Bitcoin Price Breaks $78,000 as Weekly Gain Tops 24%
From $63,000 to Nearly $79,500 in Days
Bitcoin staged a sharp rally between August 17 and 21, 2026. BTC climbed from around $63,000 to nearly $79,500 before ending the week above $77,000. That gave Bitcoin a weekly gain of more than 24%, its strongest weekly performance since March 2024.
The move came after several weeks of relatively tight trading. Once Bitcoin pushed through resistance, leveraged buying helped drive the price higher at a faster pace.
Best Weekly Performance Since 2024
Bitcoin’s breakout came after a period of limited price movement. The move above previous resistance attracted buyers and added to the momentum.
Leverage then played a part. As prices rose, traders betting on a decline were forced to close their positions, creating additional buying pressure.
$2.7 Billion in Short Liquidations Turns the Rally Into a Squeeze
Why Were Bitcoin Shorts Forced to Cover?
CoinGlass data showed about $2.74 billion in crypto short positions were liquidated within 24 hours. Short positions made up roughly 92% of total liquidations. Bitcoin accounted for about $1.4 billion to $1.7 billion of those liquidations. A reported $48.8 million Bitcoin short position was also liquidated on Hyperliquid.
When short sellers are forced to close positions, they generally have to buy the asset back. During a fast rally, that can push prices higher and create a short squeeze.
Bitcoin and Ethereum Bearish Bets Take the Biggest Hit
Ethereum also recorded about $1.13 billion in short liquidations. The scale of the forced buying shows how quickly the rally spread across major cryptocurrencies.
Still, liquidation-driven gains do not always last. Once leveraged positions have been cleared, the market needs new buyers to keep prices moving higher.
U.S. Policy and Treasury Moves Add Fuel to the Bitcoin Rally
SEC Crypto Proposal Boosts Regulatory Optimism
On August 18, the SEC proposed a framework for crypto asset offerings. The proposal included exemptions aimed at making fundraising easier for qualifying projects, along with a conditional safe harbor for certain tokens.
Traders viewed the proposal as a more crypto-friendly policy signal. That helped improve sentiment around digital assets as Bitcoin was already gaining momentum.
Treasury Buybacks and a Weaker Dollar Support BTC
The U.S. Treasury also increased its planned long-term bond buybacks. The maximum amount rose from $2 billion to at least $4 billion per operation, starting September 9.
Lower yields and expectations for improved liquidity supported risk assets, including Bitcoin. A weaker dollar also provided a supportive backdrop for the cryptocurrency’s advance.
Bitcoin ETFs Show Whether the Rally Has Real Buying Behind It
U.S. spot Bitcoin ETFs recorded $606.3 million in net inflows on August 20. Across four sessions, inflows reached about $1.61 billion, according to The Wall Street Journal.
Those flows suggest institutional demand returned as Bitcoin moved higher. That matters because the rally was also driven by a large wave of short covering.
Sustained ETF inflows would provide stronger evidence that buyers are willing to support Bitcoin above $75,000. If inflows slow sharply, the market could become more vulnerable to profit-taking after such a rapid rise.
What Meyka Says About Bitcoin’s Forecast and Technical Setup
Meyka’s latest available Bitcoin USD analysis rated BTCUSD C+ with a HOLD view and a 12-month target of $97,867.61. Its June 6 reading showed a bearish trend, with ADX at 33.98 and MACD at -1,865.18. Those figures predate the latest breakout.
Meyka’s AI stock analysis tool can help track forecasts and technical indicators. For the current setup, $78,000 to $80,000 is the main resistance zone, while $77,000 remains an important near-term reference after the weekly close.
Can Bitcoin Hold $78,000 and Challenge $80,000?
The next test is whether buyers can defend the breakout. A sustained move above $80,000 would strengthen the bullish case. A drop back through the $77,000 to $78,000 area could instead bring profit-taking into the market.
Other analysts have also pointed to stronger institutional demand. The Wall Street Journal reported that ETF inflows were accelerating, while Standard Chartered sees further upside if demand remains strong.
Standard Chartered’s Geoffrey Kendrick said Bitcoin’s earlier $100,000 year-end forecast could prove too low. He sees a possible path toward the $126,000 record if the recovery continues.
Conclusion: What Bitcoin’s 24% Rally Means Now
Bitcoin’s August rally has been driven by several forces at once, including forced buying from short liquidations, stronger ETF demand, supportive U.S. policy signals, and expectations for better liquidity.
The next phase will show whether that momentum can continue after the short squeeze. Holding $77,000 and breaking above $80,000 would keep the bullish setup intact. Traders will also be watching ETF flows, leverage and Treasury yields for signs of whether the rally has enough underlying demand to continue.
Disclaimer:
The content shared by Meyka AI PTY LTD is for research and informational purposes only. Meyka is not a financial advisory service, and the information provided should not be treated as investment or trading advice.
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