Analysts view recent liquidations as a leverage flush rather than a trend reversal amid steady derivatives data.
Bitcoin stabilized around $77,700 after briefly dipping below $77,000, following a liquidation wave that analysts attribute to de-risking rather than capitulation. Derivatives data showed open interest remained steady and funding rates subdued, signaling limited aggressive long positioning before the drop.
The $75,000 to $77,000 range is seen as critical support, with liquidations evenly split between longs and shorts. Rising U.S. Treasury yields and geopolitical tensions, including U.S.-Iran risks, are cited as key headwinds that may keep bitcoin range-bound unless yields ease.
Traders appear to have engaged in short-term bottom-fishing, but the lack of structural leverage buildup suggests the selloff was not the start of a broader downturn.