Bitcoin Struggles near $77,000 as Inflation Fears and Bond Yields Pressure Market

Bitcoin is trading below the $78,000 level, facing renewed selling pressure after failing to break above a major resistance zone. Btc recently tested overhead resistance near $80,000 but failed to maintain momentum, leading to a fresh pullback.

At the time of writing, Bitcoin is trading between $77,800 and $78,200, recording a 24-hour decline of around 1% to 1.5%. Despite the short-term weakness, Bitcoin’s market capitalization remains near $1.56 trillion, while the Fear & Greed Index sits around 41, reflecting a neutral market mood.

Inflation and treasury yields weigh on crypto sentiment

Broader market sentiment has weakened after stronger-than-expected U.S. inflation data revived concerns that interest rates could stay higher for longer. Rising U.S. Treasury yields have also reduced investor appetite for riskier assets, including cryptocurrencies.

These macroeconomic pressures triggered mild liquidations across crypto markets, with traders becoming more cautious amid uncertainty around monetary policy.

Technical indicators show mixed signals for Bitcoin

From a technical perspective, Bitcoin recently faced rejection near its 200-day moving average as Blockto recently reported, an area many traders consider a key long-term trend signal.

However, some analysts believe current price action may form a possible bear trap, where short-term weakness is followed by a sharp rebound.

Key Bitcoin support and resistance levels to watch

Traders are closely watching support between $75,000 and $71,000, which could act as a buying zone if selling pressure continues. On the upside, reclaiming and holding $80,000 remains important for restoring bullish momentum.