Bitcoin trades near $77,700 as analysts eye $75,000 support level

Bitcoin traded around $77,700 after a fresh liquidation wave, with derivatives data suggesting the move was more of a leverage flush than a one‑sided capitulation. Open interest remained relatively steady while funding rates stayed low or negative, a sign that traders were trimming exposure rather than piling into new longs.

The sell‑off saw intraday prints as low as $76,685 before a recovery toward the mid‑77k area; CoinGlass recorded roughly $200 million in liquidations over the prior 24 hours, split almost evenly between long and short positions. HashKey Research senior researcher Tim Sun told CoinDesk that the absence of a large build in leveraged long positions ahead of the drop implied many of those liquidated were short‑term, leveraged funds attempting to bottom‑fish, rather than evidence of wholesale investor capitulation.

Market mechanics pointed to caution across derivatives desks: with funding subdued and open interest steady, the rebound lacked a clear influx of fresh speculative demand. That dynamic can cap upside momentum and keeps bitcoin vulnerable to renewed swings if a key support band gives way. Analysts are watching the $75,000–$77,000 range as a defined near‑term floor; a decisive breach could accelerate deleveraging, while a sustained hold would keep the market in a defensive, range‑bound phase.

Macro factors remain a chief headwind. CoinDesk noted that long‑term U.S. Treasury yields—particularly the 30‑year—have risen, pushing above the 5% mark, which raises the opportunity cost of holding non‑yielding assets like bitcoin. Geopolitical tensions, notably around U.S.–Iran relations, and oil price volatility also keep inflation and yield expectations elevated, limiting the case for immediate fresh capital flows into risk assets.

Looking ahead, market participants see two clear catalysts: a material easing in geopolitical risk and a retracement in long‑term yields could free up room for renewed buying, whereas persistent yield pressure and continued ETF outflows would likely leave BTC trading in a tight band and prone to episodic liquidation events. Traders and asset managers will be watching funding rates, open interest and spot ETF flows closely as the next signals of whether the recent correction is exhausted or merely paused.