Why is the Bitcoin price still falling?
Currently trading around $76,800, the king of cryptocurrencies is experiencing some turbulence. This sudden bearish movement is no coincidence but the direct consequence of a tense macroeconomic climate. Indeed, the sharp rise in oil prices and the surge in US Treasury yields have triggered widespread risk aversion, weighing down volatile assets.
The current selling pressure can be explained by the fragility of recent investors. According to data from Binance Research, short term holders are finding themselves in unrealized losses and are liquidating their positions at the slightest macroeconomic shock. This panic has triggered a cascade of liquidations in the derivatives markets, exacerbating the price correction.
However, long term fundamentals remain surprisingly strong. Long term investors are not flinching and refuse to sell. Even better, BTC reserves on exchanges are stagnating near their lowest levels in six years. This supply scarcity could act as a shock absorber and prevent a total market collapse.
Despite this supply resilience, the macroeconomic context is dictating the rules in the short term. Furthermore, spot volumes are generally showing no bullish signs. Worse still, they have hit a low not seen since July 2025.
Is the key Bitcoin support in danger?
In terms of technical analysis, losing the psychological support of $77,000 is a major warning sign. Indeed, this price corresponds to a bullish trendline. By liquidating this level, Bitcoin exposes itself to a deeper drop down to $73,000. If the bearish momentum intensifies, the next level to watch is around $75,200 which could be reached within the next 24 hours. A breakdown of this zone could invalidate the short term bullish structure and pave the way for this much deeper retracement.
Conversely, to hope for a bullish scenario, buyers must imperatively regain control. A quick bounce back above $77,500 is necessary to reassure the markets. If the RSI shows oversold signs on lower timeframes, a breakout above $79,500 would restart the engine and target a new ATH.
Moreover, it is worth noting that a CME gap has formed up to $79,000. It is in this context that trader Killa announced starting to long Bitcoin at this level, hoping for this bounce and the closing of the CME gap in the coming days.
On the other hand, trader DrProfits announced adding to his Bitcoin short at $78,000 and that the big crash is brewing. So who will be right? The battle between the bulls and the bears is reaching its peak.
Is it the right time to buy Bitcoin before the next bull run?
Does this drop below $77,000 represent a golden accumulation opportunity or the beginning of a long dry spell? With exchange reserves at rock bottom, a simple return of liquidity could trigger a spectacular price surge.
However, RSI divergences and weak spot volumes show Bitcoin weakness rather than the opposite. And with the launch of the SpaceX IPO scheduled for June 11 to 12, liquidity could become even scarcer.
For now, it is better to favor day trading and quick entries and exits. Because Bitcoin could still remain between $90,000 and $60,000 for a long time while calls on the options markets are keeping the price below the max pain level around $84,000. Furthermore, Bitcoin ETFs recorded nearly $1.5 billion in outflows last week.
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