BTC is trading near $77.7K, with analysts eyeing the $75,000 zone as support in the aftermath of a liquidation wave

Bitcoin traded near $77,733 during midday Hong Kong hours, holding steady after a volatile session that briefly dragged prices to $76,685 and failed to sustain moves above $78,000 in U.S. trading, according to CoinDesk data.

The latest swing occurred during a liquidation-heavy period across crypto markets, though derivatives signals suggest the decline was driven primarily by leverage unwinding rather than a deeper structural shift in sentiment.

Open interest, which tracks outstanding leveraged futures positions, stayed broadly unchanged through the move. Funding rates also remained subdued or turned negative, indicating traders were not aggressively positioned long ahead of the drop. HashKey Group senior researcher Tim Sun said this points to relatively cautious positioning rather than crowded bullish trades.

Sun added that the absence of excessive leverage suggests liquidations were concentrated among short-term participants trying to catch the bottom, rather than widespread market capitulation. He also noted that the current structure does not indicate a broader downtrend, with support forming in the $75,000–$77,000 region.

At the same time, macroeconomic conditions continue to dominate market direction. Rising long-term yields, persistent inflation concerns, and elevated oil prices are weighing on risk appetite, leaving limited new capital flowing into speculative assets.

CoinGlass data showed about $200 million in crypto liquidations over the past 24 hours, split almost evenly between long and short positions, underscoring a two-sided shakeout rather than a one-way crash.

Sun highlighted the U.S. 30-year Treasury yield moving above 5% as a key factor, noting that higher yields raise the opportunity cost of holding non-yielding assets like bitcoin while tightening financial conditions across markets.

Looking ahead, he said geopolitical developments may serve as the next catalyst. A cooling of U.S.-Iran tensions could ease oil prices and inflation expectations, potentially softening yield pressures and supporting a rebound in bitcoin.

Until then, bitcoin is expected to remain range-bound, with the $75,000–$77,000 zone acting as a key near-term support area.