Bitcoin’s recent recovery attempt has lost momentum as the Bitcoin price falls below $78,000, with traders reacting to weaker technical indicators, rising inflation concerns, and declining institutional demand.
On Sept. 10, Bitcoin dropped to an intraday low of around $76,676 before trading near $77,278, marking a decline of approximately 1.31% on the day.
The broader cryptocurrency market also moved lower, falling about 2% over 24 hours as investors reduced exposure to risk assets ahead of the Federal Reserve’s September policy meeting.
Bitcoin Faces Pressure From Inflation and Fed Concerns
One of the major factors affecting Bitcoin’s price movement is the latest U.S. producer inflation data.
August producer price inflation came in higher than expected, increasing concerns that the Federal Reserve could maintain a tighter monetary policy for longer.
Higher interest rates often create pressure on risk assets such as cryptocurrencies because investors may prefer traditional yield-generating assets like government bonds.
Market participants are now closely watching the Federal Reserve’s September meeting, where interest rate decisions could influence Bitcoin’s next major move.
BTC Drops Below Key Bollinger Band Support
Bitcoin’s daily chart shows weakening momentum after several unsuccessful attempts to break above the $80,000 level.
The cryptocurrency recently reached above $82,000 in early September but failed to maintain bullish momentum, forming lower highs as buyers struggled to push prices higher.
Bitcoin has now moved below the daily Bollinger Band midpoint near $78,650, shifting attention toward the lower support zone around $76,392.
Important price levels traders are watching include:
- Support: $76,392
- Next downside levels: $76,000 and $75,000
- Resistance: $78,650
- Major resistance: $80,900 to $82,300
A daily close below the lower Bollinger Band could increase the possibility of further downside movement.
4-Hour Supertrend Turns Bearish
Short-term technical indicators are also showing weakness.
Bitcoin’s 4-hour Supertrend indicator has shifted into bearish territory after BTC dropped below previous support around $78,204.
The indicator now shows resistance near $79,676, meaning Bitcoin needs to reclaim these levels before short-term sentiment improves.
Another warning sign comes from the Chaikin Money Flow (CMF) indicator, which dropped to -0.06.
A negative CMF reading suggests that selling pressure and capital outflows are currently stronger than buying activity.
While Bitcoin bounced from its intraday low near $76,676, buyers still need to defend the lower Bollinger Band area to prevent a deeper correction.
Bitcoin Liquidation Levels Could Influence Next Move
Bitcoin’s liquidation heatmap shows major liquidity areas around the current price range.
A large concentration of leveraged positions exists near:
- $79,500–$80,000 on the upside
- $76,800–$77,500 on the downside
If Bitcoin moves higher, the $80,000 area could become a target as short positions face liquidation pressure.
However, if sellers regain control, the lower liquidity zones around $76,000 and $75,000 could attract further price movement.
Liquidation zones do not predict direction, but they often act as areas where volatility increases.
ETF Outflows Add to Bitcoin Weakness
Institutional demand has also shown signs of slowing.
U.S. spot Bitcoin ETFs recorded approximately $201.9 million in net outflows, ending a nine-day inflow streak.
Although weekly ETF flows remained positive overall, the decline in daily demand added additional pressure to Bitcoin’s short-term outlook.
Investors appear to be reducing risk exposure while waiting for clearer signals from inflation data and the Federal Reserve.
Bitcoin’s Next Move Depends on Key Support Levels
Bitcoin is now approaching an important technical zone.
If buyers successfully defend the $76,392 support level, BTC could attempt another recovery toward $78,650 and eventually the $80,000 region.
However, losing this support could open the door toward lower levels around $75,000 and $74,000.
For now, Bitcoin remains caught between weakening technical indicators and potential upside liquidity zones, making the next few trading sessions critical for determining whether bulls can regain control.
