Bitcoin trades near $77,700 as analysts eye $75,000 support after liquidation wave
Key takeaways
- Derivatives positioning suggested the recent selloff may have been more of a leverage flush than the start of a broader market breakdown.
- "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.
- 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.”
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 BTC$77,515.12 traded near $77,733 by midday Hong Kong time, according to CoinDesk data, little changed over the past 24 hours, after sliding as low as $76,685 and failing to hold above $78,000 during U.S. trading hours.
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