Bitcoin Stalls at $77.5K Support— Breakdown or Bounce Ahead?

• Bitcoin fell below $80,000, near to $77,500 support level, as market volatility accelerated and liquidations rose.
• The long-short ratio dropped to 0.81 as short positions accounted for 53% of transactions.
• Crypto derivatives incurred $207 million in liquidations, with Bitcoin’s value being correlated with global liquidity patterns.

Bitcoin fell below the $80,000 threshold on Sunday, April 6, a turning point for market momentum. Investor sentiment weakened across global markets, fueling heightened volatility. With Bitcoin now hovering around the $77.5K support level, traders are increasingly concerned that a break below could lead to a substantial price decline ahead.

Source: X

Sunday’s decline occurred in the wake of increased market liquidations, reaching a whopping $590 million in 24 hours. The sell-off wiped out previous gains that Bitcoin had accumulated, particularly as it outperformed the traditional markets in the recent weeks. The sudden trend reflects growing caution along with waning momentum among both institutional and retail participants.

Bitcoin Long-Short Ratio Drops to 0.98

The Bitcoin long-short ratio has dropped to 0.98, indicating that short positions currently account for 50% of all transactions. This flip implies increasing skepticism regarding Bitcoin’s short-term outlook. A large number of traders are anticipating a further decline, particularly considering the volatile environment in global equities and geopolitical issues.

BTC Long/Short Ratio Chart

Historic stock indices mirrored crypto’s downtrend. The S&P 500, Nasdaq 100, and Dow Jones closed their worst week since 2020, joining the correction zone. The sell-off is indicative of general financial worry as investors position for geopolitical tensions, inflationary uncertainty, as well as retaliatory tariffs from the EU in light of new U.S. trade policies.

Bitcoin closed Q1 2025 with an 11.7% loss, marking its lowest-performing first quarter since 2014. Ethereum also took a hit, as Sunday’s price fall helped drive $72 million in long liquidations. The overall crypto market cap fell by 2.45% to $2.59 trillion. BTC continues to hold a commanding 62% market dominance.

Crypto Derivatives Witness $207 Million in Liquidations

Bitcoin’s price movements are increasingly linked to worldwide liquidity patterns, rendering it a benchmark of macroeconomic well-being as well as investor sentiment, according to analysts. Crypto derivatives experienced a liquidation spree, with $207 million of long positions liquidated. Popular analyst Jonathan Randing observed the way that BTC was heading towards the Weekly 50 EMA, a major bull market indicator.

Source: X

Weekend trading saw BTC’s volatility decrease even as the stock volatility index VIX rose, as investors’ behavior diverged. BTC closed at just above $77,441, down 6% on the week, as market watchers considered whether crypto could decouple from equities or see further declines. Measures of volatility suggest uncertainty, yet relative strength as well.

Read More: Bitcoin (BTC) Holds Above $80,000 Support Despite S&P 500 Volatility