Bitcoin trades near $77,700 as analysts eye $75,000 support after liquidation wave

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Bitcoin trades near $77,700 as analysts eye $75,000 support after liquidation wave Open interest held steady and funding stayed subdued during the recent liquidation wave, suggesting traders were de-risking rather than capitulating, according to HashKey Research's Tim Sun. What to know: - Bitcoin hovered around $77,700 after a brief drop below $77,000, with derivatives data suggesting the move was a leverage flush rather than the start of a deeper downturn. - Analysts say the $75,000 to $77,000 range remains a key support zone, as liquidations were split between longs and shorts and did not reflect a one-sided capitulation. - Rising long-term U.S. Treasury yields and geopolitical tensions, particularly around U.S.-Iran relations and oil prices, are seen as the main headwinds for bitcoin, which may stay range-bound unless yields ease. Bitcoin Derivatives positioning suggested the recent selloff may have been more of a leverage flush than the start of a broader market breakdown. Open interest, a measure of outstanding leveraged futures positions, held relatively steady while funding rates stayed low or negative, a sign that traders were not aggressively piling into bullish bets before the drop. "There was no massive accumulation of leveraged longs prior to this, meaning most of those liquidated in this drop were leveraged funds attempting short-term bottom-fishing. Second, this signals that we are not in the middle of a structural trend reversal downward. The temporary bottom of $75,000–$77,000 remains well-defined," Tim Sun, senior researcher at HashKey Group, told CoinDesk The bigger problem, he said, is macro: investors are de-risking as long-term yields rise, oil and inflation risks remain in focus, and there is “currently no compelling reason for new capital to enter the market.” CoinGlass data showed $200 million in crypto liquidations over the past 24 hours, split almost evenly between long and short positions, suggesting the move was less a one-sided capitulation than a volatile market whipping both directions. Sun pointed to the U.S. 30-year Treasury yield, which recently pushed above 5%, as the more important pressure point. Higher long-term yields tend to weigh on speculative assets by raising the opportunity cost of holding non-yielding assets like bitcoin while tightening broader financial conditions. The next catalyst may come from geopolitics. Sun said a meaningful de-escalation in U.S.-Iran tensions could cool oil prices and inflation expectations, easing pressure on yields and giving bitcoin room to rebound. But if yields remain elevated and geopolitical risks persist, bitcoin may stay stuck in what he described as a defensive, range-bound market, with the $75,000 to $77,000 zone serving as the key near-term support level. More For You Polymarket has gone dark in India and as per local media reports, Kalshi could be next. What to know: - Polymarket, a major decentralized prediction market, has been blocked for users in India after a government directive ordering internet providers to cut access to certain betting platforms. - The Ministry of Electronics and Information Technology has reportedly already issued a blocking order for Polymarket and is preparing a similar order for...

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