Bitcoin holds $77,700 as analysts identify $75,000 support after liquidations
In brief
- Bitcoin traded near $77,733 by midday Hong Kong time, sliding to $76,685 during U.S. hours.
- Open interest remained steady and funding rates stayed low during the $200 million liquidation wave.
- De-risking driven by rising long-term yields and geopolitical oil risks, per HashKey's Tim Sun.
- $75,000–$77,000 zone marks key near-term support for Bitcoin.
Liquidations Signal De-Risking, Not Capitulation
CoinGlass data showed $200 million in crypto liquidations over the past 24 hours, split almost evenly between long and short positions. But the underlying structure of the move tells a different story.
Open interest held relatively steady while funding rates stayed low or negative during the recent selloff, according to HashKey Research. Tim Sun, senior researcher at HashKey Group, said most liquidated positions were leveraged funds attempting short-term bottom-fishing—not capitulation from long-term holders. This distinction matters. It suggests traders were de-risking at the margin, not abandoning bitcoin wholesale.
"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
Where Support Holds
Tim Sun identified the $75,000 to $77,000 zone as the key near-term support level for bitcoin. That zone sits roughly 3% below current levels. The pressure on bitcoin stems from macro headwinds, not weakness in the asset itself.
The U.S. 30-year Treasury yield recently pushed above 5%, and higher long-term yields tend to weigh on speculative assets by raising the opportunity cost of holding non-yielding assets like bitcoin. Oil prices and inflation expectations remain elevated. Investors are de-risking as long-term yields rise, oil and inflation risks remain in focus, Sun noted. That environment doesn't invite new capital.
Relief could come from geopolitics. 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. For now, the $75,000 support level remains the focal point.