Bitcoin Slumps Below $78K After Reversal from $81K Breakout

Bitcoin's recent breakout above $81,000 has reversed, causing the cryptocurrency to fall below $78,000. The price decline was triggered by a wave of long liquidations as traders took profits and unwound their bullish leverage.

The pullback followed a round of profit-taking and an increase in leveraged long positions after last week's short squeeze pushed Bitcoin above $80,000.

According to CoinGlass data, the wider crypto market recorded $324.4 million in liquidations over 24 hours, with long positions accounting for approximately $270 million (83% of the total).

Bitfinex analysts expect Bitcoin to consolidate between $77,100 and $80,000 before determining its next direction.