Bitcoin under pressure: slips below $78,000 amid liquidations and bearish options

The price of Bitcoin saw a sharp decline over the weekend, falling below the $78,000 mark and hitting its lowest levels since April. According to traders, the decline reflects a combination of profit-taking, reduced liquidity and the absence of new buyers after the boost from corporate demand, particularly linked to Strategy purchases, weakened. The episode is part of a broader picture of weakness which, according to some analysts, has lasted for months. Eric Crown, a former options trader at NYSE Arca, has been arguing since late October that Bitcoin has entered a bearish sideways phase and that optimism about new highs represents only “hopium.” Technical signals reinforce this reading: monthly MACD in a bearish cross, negative weekly moving averages and a yearly reversal candle. The options market is also showing a change in sentiment, with increasing bets on a drop below $75,000 and a reduction in bullish positions towards $100,000. Meanwhile, spot ETF-weighted flows point to negative aggregate returns for some institutional investors, while cooling US inflation could impact the macro outlook and behavior of risky assets. PepsCrypto reading The current phase suggests a more cautious market, in which the bullish narrative gives way to defensive risk management and increasing attention to derivative and macroeconomic signals.