Bitcoin Slides Below $78K as Bull Market Hopes Hang in Balance

Bitcoin (BTC) experienced a decline below $78,000 after July's PCE inflation reading exceeded market projections. The US Personal Consumption Expenditures (PCE) index rose to 3.7% annually, surpassing the anticipated 3.6%. This news had a ripple effect on traditional markets, with equities and precious metals also experiencing declines.

CryptoQuant analysis suggests that Bitcoin has entered an early bull market phase but requires a decisive close above $83,000 for validation. The company's Bull Score indicator surged from 30 to 80 in seven days, representing its strongest signal since October 2025. A sustained close above the $83,000 threshold would confirm a new bull cycle.

Rekt Capital warns that the recent price surge may be a temporary bear market rebound. The analyst cautions that Bitcoin faces the possibility of extending its pattern of descending highs established since October 2025. The 50-week EMA positioned at $77,251 is a crucial level requiring recapture and maintenance.