Bitcoin Faces Bull Trap Risk as BTC Falls Below $77,000 Amid Market Pressure

Bitcoin started the week under pressure, slipping to nearly $76,500 during early trading and marking its lowest level since May 1. The decline pushed BTC below the important 21-week exponential moving average near $78,660, raising concerns among traders about whether the recent rally was a temporary “bull trap.”

BTC has now erased much of its gains from early May after struggling to hold support near the $75,000 to $76,000 range. Some market analysts believe Bitcoin could still stage a relief bounce if this level holds, while others warn that losing support may trigger a larger correction toward $71,000 or even $65,000.

Iran Tensions and Rising Oil Prices Pressure Crypto

Fresh geopolitical concerns involving Iran added pressure to markets after U.S. President Donald Trump warned that “the clock is ticking” for Iran. Rising fears around the Strait of Hormuz pushed oil prices higher, with WTI crude briefly approaching $104 per barrel.

Higher oil prices have increased inflation worries, reducing expectations for U.S. interest rate cuts and putting pressure on risk assets such as Bitcoin.

Nvidia Earnings and PMI Data Could Shift Sentiment

Despite weak market mood, traders are closely watching upcoming economic events that may influence Bitcoin’s direction. Manufacturing PMI data later this week and Nvidia earnings on Wednesday could improve investor confidence if results exceed expectations.

Bitcoin Whales Stay Calm Despite Sell-Off

CryptoQuant data shows large Bitcoin holders, often called whales, have not significantly reduced their holdings. Some major wallets are even increasing exposure, suggesting confidence that the market may already be near a bottom.

However, analysts also reported rising exchange inflows from investors holding Bitcoin for six to twelve months, a signal that some long-term holders may be capitulating and adding short-term selling pressure.