Bitcoin slides after losing key support
Bitcoin slipped back toward $77,000 during Friday trading after losing a key ascending trendline that had supported its recovery from April lows. Data from crypto.news shows BTC traded near $77,200 after briefly losing the rising support structure. Selling pressure picked up again when Bitcoin failed to reclaim the $82,000 resistance area, which aligns with a descending local trendline and the 200-day moving average near $80,825 on daily charts.
Leverage liquidation adds pressure
Leveraged long positions took the hardest hit over the past week. Derivatives data indicates between $661 million and $850 million in long liquidations were wiped out across exchanges as Bitcoin reversed from May highs. The liquidations amplified downside momentum as forced selling pushed prices into lower liquidity zones. At the same time, U.S. spot Bitcoin ETFs saw roughly $1.4 billion in cumulative net outflows last week, signaling a slowdown in institutional demand after months of post-halving buying. BlackRock’s IBIT reportedly had one of its biggest daily outflows during the move.
On-chain data also turned bearish. Analysts noted 9,664 Bitcoin, worth over $744 million, were moved to exchanges in the last five days, often signaling potential selling. Separately, Lookonchain reported that Trump Media & Technology Group moved another 2,650 BTC, worth about $205 million, to Crypto.com, adding to worries about large holders distributing coins.
Oil and macro factors weigh
The decline came during Bitcoin Pizza Day week, typically associated with higher trading activity, but traders faced rising volatility and worsening macro conditions. Outside crypto, oil prices added pressure. WTI crude futures climbed back above $98 per barrel after reports suggested Iran’s Supreme Leader ordered enriched uranium reserves to stay inside the country, complicating talks with Washington. Geopolitical tensions rose further with reports that Iran and Oman were working on a framework for toll systems through the Strait of Hormuz, but President Trump rejected the proposal. Even with crude still down over 3% for the week, energy traders stayed cautious.
U.S. Secretary of State Marco Rubio noted some encouraging signs for a possible deal, while Pakistani mediators planned talks in Tehran. Higher oil prices compounded inflation worries after recent CPI and PPI readings came in above expectations. Treasury yields climbed toward yearly highs as markets reduced expectations for aggressive rate cuts. Investors are also preparing for a potential Fed leadership transition from Jerome Powell to Kevin Warsh, which many see as more hawkish.
Technical picture weakens
Technically, Bitcoin’s daily structure has weakened after the price broke below a rising white trendline that had connected higher lows since April. The breakdown happened after repeated rejection under the descending red resistance trendline near $82,000, forming a lower high on daily timeframes. Bitcoin also fell below its 20-day moving average around $79,375 and remains trapped under the 200-day moving average near $80,825.
The 50-day moving average around $76,427 now emerges as the next major support. Daily candles compress between declining short-term resistance and the rising 100-day moving average near $72,553. The MACD histogram on daily charts turned negative, with the MACD line crossing lower beneath the signal line. Earlier bullish momentum from April’s recovery has faded throughout May as buyers failed to break above resistance.
Liquidation data from CoinGlass suggests vulnerability to another sweep lower. The 24-hour liquidation heatmap shows dense long liquidation clusters between $76,000 and $76,500, with another near $74,000. Large liquidity pockets above current price are near $78,000 to $79,000, potentially acting as short-term magnets during relief bounces.
Crypto trader Lennaert Snyder noted Bitcoin’s daily candle closed pretty weak after failing to reclaim the $78,200 highs. He said the market remains trapped in a mid-range structure with a likely sweep of sell-side liquidity at the $76,400 range lows before any meaningful recovery. Daniel Reis-Faria, CEO of ZeroStack, told crypto.news that Bitcoin’s rejection near its 200-day moving average signaled weak buying pressure. He said unless buying picks up again, Bitcoin is likely to stay under pressure.
Derivatives positioning also shows caution. Funding rates on perpetual futures have cooled compared to earlier May levels, while open interest has fallen with price, signaling ongoing deleveraging rather than fresh speculation.
What could change the outlook?
A recovery above $79,000 would be the first sign of sellers losing control. Beyond that, Bitcoin would need to reclaim the 200-day moving average near $80,800 and break the descending resistance trendline. Any breakthrough in U.S.-Iran negotiations that lowers oil prices could ease inflation concerns and reduce pressure on Treasury yields. Softer economic data or renewed Fed easing expectations would likely lift sentiment across crypto and equity markets.
ETF demand remains key. Persistent outflows have weighed heavily on spot liquidity. A return to net inflows could stabilize price quickly, especially given how much leverage has already been flushed from the system.
Failure to hold $76,000 could expose Bitcoin to a deeper move toward the $74,000 liquidity zone on derivatives heatmaps. Below that, traders may target the 100-day moving average near $72,500 as the next major support during a prolonged risk-off phase.
