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

The recent inflation reading of 3.7% in July's PCE index has led to a decline in Bitcoin's price, pushing it below $78,000. This drop was concurrent with declines in traditional markets such as equities and precious metals.

CryptoQuant analysis suggests that Bitcoin has entered the early stages of a bull market, but requires a decisive close above $83,000 for validation. The company's Bull Score indicator has increased significantly since last week, representing its strongest signal since October 2025.

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