Bitcoin has fallen below the $77,000 mark, trading at $76,679 after a 3.08% decline. This drop is attributed to heightened liquidation-driven selling and a surge in trading volume, which has intensified the downward pressure on the asset.
Within the past 24 hours, the price of BTC has gravitated towards the lower end of its daily range, hitting an intraday low of $76,661.05 and peaking at $79,157.12. The overall market capitalization for Bitcoin has decreased to $1.53 trillion, reflecting a decline of approximately 3.1%. In contrast, the 24-hour trading volume has surged to $50.15 billion, marking a significant increase of 36.9%, indicative of an elevated level of selling activity.
A primary factor contributing to today”s market weakness has been an earnings shock from a significant player in the crypto space. Galaxy Digital reported a staggering $482 million quarterly loss, a direct consequence of the downturn in digital asset valuations. This development has negatively impacted investor confidence across the cryptocurrency markets and led to a drop in the company”s stock price.
Broader macroeconomic factors are also affecting Bitcoin”s price trajectory. The nomination of Kevin Warsh as Chair of the Federal Reserve by President Trump is perceived as a hawkish move, which has bolstered expectations regarding the dollar. This situation has put additional pressure on risk assets, including cryptocurrencies, as traders brace for a tighter monetary policy that could lead to reduced liquidity and lower inflows into speculative investments.
Notable investors, including Michael Burry, have issued warnings about potential further declines if the current bearish trend continues, fostering a more cautious sentiment among both institutional and retail traders.
From a technical perspective, the daily chart for Bitcoin reveals a distinctly bearish setup. The cryptocurrency is trading below key moving averages, including the 21-day moving average at $92,183.33 and the 50-day moving average at $90,787.32. Furthermore, the longer-term baseline around $84,260.49 has already been breached, indicating sustained downward pressure rather than a temporary pullback.
Momentum indicators reinforce this bearish outlook. The 14-day Relative Strength Index (RSI) has dropped to 33.58, indicating strong bearish momentum with limited buying activity at current levels. The MACD indicator also reflects ongoing bearish sentiment, with both the MACD and signal lines situated below zero, and the histogram showing increasing negative values.
As Bitcoin hovers near the support level of $76,000, a daily close below this threshold could open the door for further declines toward the $72,000 to $70,000 range, where previous consolidation has occurred. Conversely, recovery above the former support range of $80,000 to $84,000 would be necessary to mitigate immediate downside risks.
In summary, the recent decline in Bitcoin”s price is a result of a combination of liquidation-driven selling, macroeconomic pressures, and deteriorating technical conditions. Current indicators suggest that sellers are firmly in control as the market approaches the close.
