Bitcoin Price Correction Risk Rises Amid Elevated Leverage

Bitcoin's recent rally has been short-lived as it faces fresh correction risk after a sharp sell-off pushed its price from above $79,000 to around $77,000. The move triggered approximately $547 million in crypto liquidations before buyers stepped back in.

The pullback came after Bitcoin reached about $79,500, its highest level in months. Analyst P4 Provider has identified $79,000 as an important resistance level and pointed to bearish RSI divergence, rising USDT dominance, and elevated funding rates as signs of increasing correction risk.

P4 Provider's downside levels range from $77,000 to $71,000, with $70,000 identified as a deeper target if selling pressure increases. The analyst advised traders to protect profits, use tight stop-losses, and wait for clearer buying opportunities.