Bitcoin rose to an eight-month high on Monday as renewed spot exchange-traded fund inflows and short liquidations supported the market. BTC traded near USD 84,892 after gaining about 5.4% over 24 hours. It reached an intraday high of USD 84,943.
The advance extended Bitcoin’s weekly gain to about 8%, while its monthly return reached 9.4%. The total cryptocurrency market rose by nearly 4.4% over the same 24-hour period. Bitcoin’s market capitalization approached USD 1.7 trillion, with its dominance remaining just below 59%.
Spot Bitcoin ETF Inflows Support the Recovery
US spot Bitcoin ETFs recorded USD 433.03 million in net inflows on September 18, marking their second consecutive day of positive flows. Fidelity’s Wise Origin Bitcoin Fund led the group with USD 310.72 million, followed by BlackRock’s iShares Bitcoin Trust with USD 108.44 million.
The inflows showed that institutional demand had started to recover after weakening earlier in the week. ETF issuers buy Bitcoin to support newly created fund shares. As a result, stronger investor demand can increase buying activity in the spot market.
SoSo value data showed that a group of US Bitcoin ETFs attracted about USD 160 million on Thursday. Those purchases ended two consecutive days of withdrawals and helped Bitcoin recover above USD 80,000.
A short squeeze added further momentum. Derivatives data showed USD 54.1 million in Bitcoin liquidations over 24 hours, including USD 42.06 million in short positions. Traders who expected prices to fall had to buy Bitcoin to close their leveraged positions, adding to market demand.
Bitcoin Reclaims its 50-Week Moving Average
Bitcoin closed Sunday at USD 81,159 on Coinbase, above its 50-week moving average of USD 78,788. This was its first weekly close above the indicator in more than 10 months. It also marked Bitcoin’s highest weekly finish in four months.
Galaxy Research head Alex Thorn previously described the 50-week moving average as a common price ceiling during Bitcoin bear markets. He said, “In four of the five completed bear markets, once the 50-week moving average was first broken to the upside, the bear market bottom was definitively in.”
However, market analysts have warned that one weekly close does not confirm a lasting trend change. Bitget chief analyst Ryan Lee said, “What matters now is whether Bitcoin can stay above the 50-week average and continue forming higher lows.”
Historical results also show that the signal can fail. Galaxy found 13 occasions when Bitcoin crossed back above its 50-week moving average. Two of those moves, both during the 2021–2022 bear market, were followed by lower price lows.
Bitcoin now faces resistance between USD 85,000 and USD 86,000. Holding above the USD 82,053 Fibonacci level would keep this zone within reach. However, a move below the psychological support at USD 80,000 could expose the next support area near USD 79,000.
Ethereum and Other Altcoins Join Market Rally
Ethereum followed Bitcoin higher and briefly traded above USD 2,700, reaching a multi-week high. XRP recovered from support near USD 1.40 and moved beyond USD 1.45. Solana climbed toward USD 115, while BNB traded close to USD 780.
Monero, Avalanche, Bittensor, NEAR, Sui and Morpho posted double-digit gains. Dogecoin, Cardano, Stellar, Bitcoin Cash and Chainlink also advanced. Overall, the cryptocurrency market added about USD 70 billion in value, lifting its capitalization to approximately USD 2.81 trillion.
The recovery followed a volatile week. Bitcoin had fallen toward USD 75,000 after the US Senate failed to advance the CLARITY Act and the Federal Reserve raised interest rates by 25 basis points. It then rebounded to USD 81,000 on Friday.
Lower oil prices and gains in global technology stocks later improved demand for risk assets. Traders will now monitor Federal Reserve speeches scheduled for September 21 and 22. Continued ETF inflows could support another test of USD 86,000, while stricter rate guidance could push Bitcoin back toward the USD 80,000–USD 82,000 range.
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