Bitcoin rally follows crypto market freeze as liquidations reach billions

Bitcoin gained more than 22% over the week and more than 23% over three days, reaching about $79,000-$79,500 before a flash crash sent it near $76,300; it later traded at $77,285 on August 22, 2026. Short liquidations intensified the move, with estimates ranging from about $2.7 billion across 72 hours to more than $3 billion in 24 hours, while a separate decline liquidated more than $500 million in long positions and contributed to total liquidations above $1.35 billion over 24 hours. The rally followed Bitcoin's break above its 200-day moving average near $69,000 and was supported by $517.19 million and $606.3 million in spot Bitcoin ETF inflows on August 19 and 20, respectively, Treasury bond buybacks, favorable U.S. regulatory developments and pro-crypto remarks from President Donald Trump. It followed a broader crypto-market period described in the records as a 110-day freeze or stagnation, although the records differ on when that period ended: one places its end at 8:30 AM on August 19, 2026, while another associates the end of relative stagnation with the October 2025 crash. The wider market had previously suffered an approximately $500 billion single-session decline and $19 billion to $20 billion in derivatives liquidations, then added $113 billion in one day during August 2026. Bitcoin's daily RSI exceeded 80, its highest level since November 2024, while four-hour RSI reached a more than seven-year high. About 53,000 BTC moved to major exchanges, including 17,800 BTC sent to Binance by holders who had bought their coins less than 24 hours earlier; six-month-or-longer holders sent none. CryptoQuant analyst Darkfost characterized the flow as speculative profit-taking rather than structural selling. XRP gained 47.72% over the week, Ether 28.93%, Solana 2.7% and BNB 2.54%, while the Fear and Greed Index reached 76. Analysts cited $75,000-$76,000 as important support, with potential upside toward $83,000-$88,000 if it holds and downside toward $70,000-$72,000 if momentum fades.

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