TLDR
- Bitcoin lost key support near $79K and $78K, pushing traders toward lower downside targets.
- More than $600 million in liquidations hit crypto markets, with long positions facing most pressure.
- Ethereum slipped below $2.2K, while major altcoins posted sharper losses during weak weekend trading conditions.
- ETF outflows, bond yields, and inflation worries kept buyers cautious despite recent regulatory progress signals.
- Options traders opened more puts before May expiry as Bitcoin momentum turned weaker near support.
The crypto market came under fresh pressure as Bitcoin fell from the $80,000 range to nearly $76,700. The move triggered more than $600 million in liquidations, with long traders taking the largest losses. Ethereum and major altcoins also dropped as macro pressure returned.
Bitcoin Breaks Support as Long Positions Unwind
Bitcoin lost two key support zones during the latest selloff. The price first fell below $79,000, then broke under $78,000 as sellers gained control. It later moved near $76,700, which showed clear short-term weakness.
The fall forced many leveraged traders out of the market. Data cited in the report showed more than $600 million in crypto liquidations across exchanges. Most losses came from long positions, which had expected higher prices.
The drop followed a short rally linked to the CLARITY Act. However, the move faded as wider market pressure returned. Traders then shifted focus back to U.S. bond yields, inflation, and ETF flows.
The next support area sits near $76,000 to $76,200. If that area fails, traders may watch $75,000 as the next downside level. A move back above $78,000 could ease some near-term pressure.
Macro Pressure Weighs on Crypto Market Sentiment
The selloff came as U.S. Treasury yields moved higher. The 30-year bond yield rose above 5.12%, according to 10x Research. The firm said, “The inflation trade is back.”
Inflation concerns also weighed on risk assets. Higher yields often make investors more careful with Bitcoin and other volatile assets. As a result, buyers stayed cautious during weak weekend trading.
Spot Bitcoin ETFs also saw redemptions after the CPI inflation data. 10x Research reported more than $1 billion in outflows from spot Bitcoin ETFs. This added pressure as Bitcoin failed to hold key price zones.
Geopolitical tension also reduced risk appetite. At the same time, futures positioning remained heavily leveraged. When Bitcoin fell, those crowded positions helped speed up the decline.
Ethereum and Altcoins Drop as Traders Turn Defensive
Ethereum fell below $2,200 during the wider market pullback. It later reached lows near $2,095, based on the figures provided. ETH also saw stronger liquidation pressure than Bitcoin over the past 24 hours.
Large altcoins also traded lower. XRP, BNB, Solana, Cardano, and Bitcoin Cash fell between 2% and 7%. Meme coins such as Dogecoin, Shiba Inu, and Pepe Coin also posted losses.
The Crypto Market Fear and Greed Index dropped from 48 to 28. A reading near 28 is usually linked to fear, while 48 points to neutral sentiment. This showed that traders moved away from risk after the price break.
Options activity also showed more caution before the May 29 monthly expiry. Traders opened more Bitcoin and Ethereum puts as downside risks grew. BIT also cited “renewed price pressure,” which added to crash concerns.
The market still shows signs of a leverage reset rather than a confirmed bear trend. ETFs remain active, and institutional adoption has not stopped. Yet Bitcoin needs to reclaim $78,000 to $79,000 before buyers regain control.
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