Bitcoin Falls Below $77,000 After Failed $79,000 Break

Bitcoin fell below $77,000 on Tuesday after failing to break through the $79,000 resistance level for the third time in eight sessions, triggering widespread liquidations of leveraged long positions amid thin weekend order books.

The cryptocurrency traded around $76,900 during the day, down about 2 percent over 24 hours from an intraday peak near $79,400 on Monday. Its market capitalization dropped to roughly $1.52 trillion. The decline erased early gains and marked the lowest point since late April, with bitcoin briefly dipping to $75,657 before a partial recovery. Data showed nearly $43 million in long positions liquidated in the latest 24-hour period, following over $100 million the previous day, compared to minimal short liquidations.

Analysts attributed the sharp move to low liquidity during weekend trading, when institutional participation typically wanes. Thin order books amplified the impact of automated sell orders from margin calls, creating a cascade effect. "With reduced participation from institutions and liquidity providers, order books become thin, making prices more sensitive to market orders," said a Cryptoquant analyst. Perpetuals funding rates remained...