Bitcoin dropped below $77,000 on September 10, extending its decline from the $80,000 region amid stronger US inflation data, rising Treasury yields, and significant leveraged liquidations across the cryptocurrency market.
Inflation pressures and rate hike bets
The latest retreat began after US producer price index (PPI) data showed an annual increase of 5.4% for August. In response, traders sharply raised expectations for another Federal Reserve rate hike at the next meeting. Reuters estimated the probability of a rate increase at about 70%, up from 65% before the inflation report was published.
Heightened rate hike predictions pressured both equities and crypto assets throughout the session. Treasury yields climbed alongside, with the 10-year US yield touching approximately 4.93% to 4.95% as oil topped $100 and inflation remained persistent.
As macroeconomic factors weighed on sentiment, Bitcoin fell as low as $76,650 before stabilizing near $77,000 late in the day.
Technical levels and liquidations
A weak technical outlook accelerated Bitcoin’s move after bulls failed to defend the $78,000 area. The breakdown triggered roughly $562 million in cryptocurrency liquidations, much of it from forced unwinding of long positions as support gave way. Data show Bitcoin ended the day near $77,188, closing down about 1.4% after swinging between $78,541 and $76,705.
Technical analysts now identify $75,000 as the next meaningful downside support, with the key 200-day moving average around $72,500 below that if sellers continue to dominate. On the upside, resistance is seen first at $78,000, followed by the $81,000 level.
Recent action marks a direct continuation of Bitcoin’s struggle to build sustained momentum beyond $80,000. Short-term direction now hinges on the ability of buyers to hold $75,000 as yields approach 5%.
| Level | Support | Resistance |
|---|---|---|
| First | $75,000 | $78,000 |
| Second | $72,500 (200-DMA) | $81,000 |
A bullish golden cross also remains on the charts, but tactical moves now appear much more correlated with inflation and liquidity headlines in the short term.
The golden cross, where a short-term moving average crosses above a long-term moving average, is often seen as a positive technical signal. However, rapid macro-driven shifts are currently taking precedence over chart patterns.
Mini dictionary: Golden cross, a bullish technical pattern that forms when a shorter-term moving average crosses above a longer-term moving average, indicating potential upward momentum.
ETF outflows deepen
US-based spot Bitcoin exchange-traded funds (ETFs) saw $120.2 million in net outflows on September 9, following $46.6 million in withdrawals the previous day. The combined total of $167 million marked the first consecutive two-day net outflow for these funds since mid-August.
ARK Invest’s ARKB led outflows on September 9 with around $78 million withdrawn, while BlackRock’s IBIT ETF posted about $19.5 million in redemptions. This reversal comes shortly after Bitcoin ETFs reported more than $1 billion in inflows across three prior trading days.
For those reviewing ETF exposure versus holding Bitcoin directly, experts note that fund flows increasingly reflect overall institutional adoption and demand.
US spot Bitcoin ETFs, launched to offer regulated exposure to the cryptocurrency through traditional markets, have grown to over $103 billion in assets. However, their recent retreat indicates weakened short-term confidence among large holders.
Looking ahead, Bitcoin’s next move will be shaped by investor appetite near $75,000 support and shifting macroeconomic conditions. A successful defense of this level could open the door to recovery toward $78,000 and another attempt at the $80,000 to $81,000 range, while a breakdown may bring the 200-day moving average into play.
