Bitcoin Eyes Another Rally as Bulls Defend $77K Support

Bitcoin could be preparing for another move higher after buyers successfully defended key support during a volatile end to August, according to prominent crypto trader DonAlt.

“Looks like we're gonna get another leg up soon,” DonAlt wrote on X on Aug. 31, pointing to Bitcoin’s resilience following a sharp intraday decline.

Bitcoin enters September after an unusually strong August and a major third-quarter recovery. BTC climbed from around $64,700 earlier in the month and briefly approached $81,000 before pulling back. The cryptocurrency is now consolidating near $78,000, with traders closely watching whether it can reclaim the $80,000-$81,000 resistance zone.

Bitcoin briefly dropped toward $77,000 after Federal Reserve Governor Kevin Warsh delivered hawkish comments that triggered an intraday decline of nearly 6%, according to Bitfinex. However, BTC stabilized near $77,100 instead of extending its losses, suggesting demand remains strong around current support levels.

Institutional accumulation has also continued despite the volatility. Michael Saylor-led Strategy purchased another 4,603 BTC for approximately $369.7 million between Aug. 24 and Aug. 30. The company paid an average price of $80,318 per Bitcoin, reinforcing its long-term accumulation strategy.

Large Bitcoin holders remain active as well. Whale Alert detected a transfer of 1,922 BTC, valued at roughly $149.7 million, between unidentified wallets on Aug. 31. Such transactions can represent custody changes, internal transfers or portfolio repositioning rather than direct market buying or selling.

Bitcoin’s third-quarter performance has been particularly notable. BTC has gained approximately 32.48% during Q3, well above its historical average quarterly return of 7.94%. The rebound follows losses of 22.2% in Q1 and 14.09% in Q2.

Still, the outlook is not universally bullish. Bloomberg Intelligence strategist Mike McGlone has highlighted Federal Reserve policy, growing competition across the cryptocurrency market and Bitcoin’s correlation with equities as potential risks.

For Bitcoin bulls, the next major challenge is clear: breaking decisively above the $80,000-$81,000 resistance range could determine whether BTC’s August recovery develops into another sustained rally.