Bitcoin Dips Below $78K as Europe Opens

Bitcoin experienced a flash crash below $78,000 on Monday as European markets opened, hitting a low of $77,819. The 24-hour decline of 0.28% came with a market capitalization of approximately $1.56 trillion and trading volume of $32.1 billion. The sell-off triggered nearly $295 million in total crypto liquidations over the past day, according to CoinGlass, reflecting heightened volatility and leveraged position unwinding.

This move follows a period of consolidation and suggests that market participants remain cautious amid macroeconomic uncertainties. The breakdown below $78,000 could attract further selling pressure if key support levels fail to hold. However, the relatively modest percentage decline indicates that the broader uptrend may not be broken yet. Traders should monitor volume and liquidation data for signs of exhaustion or reversal.

Overall, the short-term outlook appears bearish due to the flash crash and elevated liquidations, but the long-term structure remains intact. A recovery above $80,000 would signal renewed strength, while further downside could test the $75,000 support zone.

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