Bitcoin has slipped back toward the $77,000 zone after breaking below an important ascending trendline that had supported its recovery since April. The latest decline comes as weakening institutional demand, rising macroeconomic pressure, and heavy liquidations continue weighing on market sentiment.
Bitcoin Falls Below Major Technical Levels
Bitcoin traded near $77,200 during Friday’s session after losing a rising support structure that had guided the market higher from April lows. The move followed another failed attempt to reclaim the $82,000 resistance area, which aligns with both a descending trendline and the 200-day moving average near $80,800.
The rejection triggered a sharp wave of selling pressure across derivatives markets. Over the past week, leveraged bullish positions absorbed significant damage as roughly $661 million to $850 million in long liquidations were wiped out across exchanges. Forced selling accelerated downside momentum and pushed Bitcoin into weaker liquidity zones.
ETF Outflows Add More Pressure
Institutional demand also weakened notably during the correction.
U.S. spot Bitcoin ETFs recorded nearly $1.4 billion in net outflows over the past week, signaling a sharp slowdown after months of strong post-halving accumulation. Reports indicated that BlackRock’s IBIT fund experienced one of its largest daily outflow sessions during the move, while other issuers also posted steady redemptions.
Onchain data added another bearish signal. Analysts noted that nearly 9,664 BTC worth over $744 million moved onto exchanges during the last five days, often viewed as a sign of increasing sell-side pressure.
Meanwhile, blockchain tracker Lookonchain reported that Trump Media & Technology Group transferred another 2,650 BTC worth roughly $205 million to Crypto.com, further increasing market concerns about potential large-holder distribution.
Rising Oil Prices and Fed Concerns Hurt Sentiment
Outside the crypto market, macroeconomic developments have added more uncertainty.
WTI crude oil prices climbed above $98 per barrel after reports suggested Iran’s Supreme Leader ordered enriched uranium reserves to remain inside the country, complicating negotiations with Washington.
At the same time, markets continue watching tensions surrounding the Strait of Hormuz, inflation risks, and possible changes in Federal Reserve leadership. Treasury yields have moved toward yearly highs as traders reduced expectations for aggressive rate cuts.
Those conditions have encouraged investors to rotate capital away from speculative assets and into safer yield-bearing instruments, creating a more difficult liquidity environment for Bitcoin and other risk assets.
Can Bitcoin Hold the $76K Region?
From a technical perspective, Bitcoin’s chart structure has weakened considerably after losing its ascending support trendline. The breakdown reinforced a lower-high formation beneath resistance near $82,000.
Bitcoin also dropped below its 20-day moving average around $79,375 while remaining under the 200-day moving average near $80,825.
The next major support now sits near the 50-day moving average around $76,427. Meanwhile, the 100-day moving average near $72,553 could become the next critical downside target if selling pressure intensifies further.
Momentum indicators are also turning weaker. The MACD histogram has moved into negative territory, showing that bullish momentum from April’s recovery phase has continued fading throughout May.
Liquidation Heatmaps Point to More Volatility
According to CoinGlass liquidation data, dense long liquidation clusters remain concentrated between $76,000 and $76,500, with another major liquidity pocket sitting near $74,000.
Crypto trader Lennaert Snyder said Bitcoin’s recent daily candle closed “pretty weak” after failing to recover above $78,200. The analyst believes the market may still sweep liquidity around the $76,400 range before any stronger recovery attempt develops.
Daniel Reis-Faria, CEO of ZeroStack, also warned that Bitcoin’s rejection near the 200-day moving average reflects weak buying pressure in the current market environment.
What Could Reverse the Bearish Outlook?
For sentiment to improve, Bitcoin would first need to reclaim the $79,000 level and then break back above the 200-day moving average near $80,800.
A cooling in oil prices, softer inflation data, or renewed expectations for Federal Reserve easing could help restore confidence across both crypto and equity markets.
Analysts also continue watching ETF flows closely. If institutional inflows return after the recent wave of redemptions, Bitcoin could stabilize more quickly given how much leverage has already been flushed from the market.
However, if Bitcoin loses the $76,000 support region, traders may begin targeting the $74,000 liquidity zone and eventually the 100-day moving average near $72,500 as the next major downside levels.
