TLDRBitcoin price surged about 22% from the mid-$63,000s to nearly $79,000 before consolidating.Coin-denominated open interest fell about 11% to roughly 312,600 BTC, showing leverage did not rise with price.CryptoQuant said fresh capital entered the market without a major increase in leveraged positions.Nearly $1 billion flowed into U.S. spot Bitcoin ETFs over a recent three-day period, supporting spot demand.Short liquidations helped accelerate the rally, while Bitcoin now faces major resistance near the $80,000 level.Bitcoin (BTC) price has climbed sharply from the mid-$63,000s in mid-August to around 77,000–78,000 by August 23–24. The move briefly pushed Bitcoin price near $79,000 before the market started to consolidate.The rally has drawn attention because several market indicators show lower leverage even as price advanced. Analysts are now watching whether spot demand can support the move above a major resistance zone.Bitcoin Price Rises as Open Interest DropsSantiment reported that coin-denominated open interest fell about 11% to roughly 312,600 BTC. That level marked a one-month low even as Bitcoin moved to fresh local highs.BTC just rallied ~22% and the leverage came off. Open interest, measured in coins, is at a one-month low. Price went from ~$63.5K on average across Aug 12 to 18 to ~$77.7K on Aug 23. Coin-denominated open interest went the other way, from ~353,500 BTC over that pre-rally… pic.twitter.com/m5S403702q— Santiment Intelligence (@SantimentData) August 24, 2026Dollar-denominated open interest still rose about 8%, mainly because Bitcoin became more expensive. Santiment said leverage did not rise with price, which reduced signs of a classic leverage-led rally.CryptoQuant reported a similar trend during the broader Bitcoin advance. The firm said fresh capital entered the market while leverage stayed controlled, pointing to stronger spot demand.Its analysts said rallies supported by new money and limited leverage usually have a firmer structure. The data showed buyers entered while traders did not add large amounts of new borrowed exposure.Glassnode reported that almost $1 billion moved into U.S. spot Bitcoin ETFs over a recent three-day period. It was the strongest three-day inflow since Bitcoin last traded above $80,000.Spot Bitcoin ETF inflows: XThe ETF flows added another source of demand during the rebound. Institutional buying through regulated funds may have helped support the market while derivatives activity remained less aggressive.Short Squeeze Meets Major ResistanceAnthony Pompliano said the advance also involved a large short squeeze. Liquidations forced bearish traders to close positions, helping Bitcoin move through resistance as prices accelerated.Bitcoin is ripping due to the largest short squeeze in bitcoin's history.But there are two other developments this week worth watching too… pic.twitter.com/1K08Qv7Hen— Anthony Pompliano (@APompliano) August 23, 2026Rekt Capital remained cautious as Bitcoin approached the top of its long-running 60,000–80,000 range. He noted that earlier relief rallies often reversed after sharp moves, making the next several weeks important for market structure.#BTC Bitcoin is right at resistance (red)Each Bear Market Relief Rally thus far would retrace sharply in the week following a strong breakout rallyNext weeks will be crucialBut maybe even already next week we'll know whether Bitcoin can sustain these highs or not$BTC… https://t.co/JaoTYb6yI3 pic.twitter.com/SoNLv82pzU— Rekt Capital (@rektcapital) August 23, 2026Bitcoin price action shows both short-covering and real spot demand. Lower coin open interest, ETF inflows, and reduced leverage suggest the rally was not driven only by derivatives.The next test is whether buyers can keep Bitcoin above recent breakout levels. Sustained demand near $80,000 could help confirm strength, while weaker flows could leave the market open to a deeper pullback.The post Bitcoin (BTC) Price Sharp Rally Runs on Less Leverage, Not More, Top Analysts Say appeared first on Blockonomi.