Bitcoin's Rebound Momentum Weakens, Price Pulls Back Amid Volatility to $79,000 Range

After reaching a new high of $81,255—the highest since May 11—Bitcoin faced sharp volatility on Tuesday (25th), plunging to a low of $78,600. As of Wednesday Taipei time, prices continue to fluctuate around the $79,000 level.

Despite a drop of approximately $3,000 within a single day, the 'Crypto Fear & Greed Index' remains steady at 74, indicating that traders generally view this pullback as a routine consolidation and profit-taking phase, rather than a deep trend reversal.

The primary reason for this market cooldown lies in macroeconomic events that have made investors more cautious. Markets are currently awaiting the release of the Personal Consumption Expenditures (PCE) price index. This index is the Federal Reserve's most closely watched inflation gauge; if data shows overheating inflation, it could force the Fed to raise interest rates, thereby weakening capital flows into alternative assets such as cryptocurrencies and gold that had previously benefited from 'carry trades'.

Additionally, Nvidia (NVDA-US), the leader in artificial intelligence, is set to release its quarterly earnings report, which is influencing overall risk appetite. However, reports from Russian media claiming a ceasefire agreement between the U.S. and Iran have boosted market optimism, slightly limiting Bitcoin's downside.

In the derivatives market, high leverage has made the overall situation extremely sensitive. Currently, open interest stands at a lofty $140.9 billion, with 24-hour liquidation volume surging by 128%. Analysis indicates that long liquidation orders are currently heavily concentrated between $77,300 and $78,000. If Bitcoin unexpectedly breaks below $79,000, it could trigger a cascade of liquidations below; conversely, if it successfully holds resistance and confirms a bottom, it could spark a short squeeze and reignite an upward move.

As Bitcoin declines, altcoin rallies have also stalled, with the broader market pulling back in tandem. Ethereum, the second-largest cryptocurrency by market cap, fell 1.4% to $2,464.44, while XRP dropped 3.8% to $1.4451. Solana and Cardano also declined by 3.6% and 5.4% respectively, and meme coins such as Dogecoin fell 2.3%.