Bitcoin (BTC) has dropped sharply over the past week, falling nearly 7% and erasing the gains made after last week’s Senate Banking Committee markup of the CLARITY Act. That legislative push had helped BTC climb above $82,000, but the coin is now trading around $76,700.
The Bitcoin Pullback
Glassnode’s latest analysis points to a clear decline in short-term market behavior. The firm says selling pressure on Bitcoin has increased, with Spot CVD dropping by 848.7%. At the same time, spot volume has risen about 4.2%, suggesting more coins are moving through the market. Glassnode sees this as a sign of rising activity that may not reflect a bullish outlook, but rather traders reacting more aggressively to price swings by hedging or repositioning.
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Futures Open Interest also fell by 2.9%, which usually indicates that traders are less eager to take on leverage during uncertain times. However, Glassnode also notes that Long-Side Funding Payments have jumped 136.6%, a sign that demand for long Bitcoin positions has returned.
But that bullish signal doesn’t last long. The firm highlights a steep 278.7% decline in Perpetual CVD, pointing to strong sell-side pressure still present in the perpetual market, where downside control can quickly affect overall sentiment.
Sentiment from traditional finance has also weakened. Glassnode points to a 6.1% drop in US Spot Bitcoin ETF MVRV, along with a sharp decline in ETF net flows, suggesting less conviction from institutional investors.
Bear Cycle Targets
Beyond sentiment, Glassnode notes that long-term holder dominance continues to grow, while NUPL and the Realized Profit-to-Loss Ratio have weakened sharply. These shifts usually signal fading optimism—less “euphoria” and more defensive behavior as traders reassess risk after the pullback.
Putting these signals together, Glassnode concludes that the Bitcoin market structure is starting to soften. Momentum, spot demand, and speculative positioning are all weakening across the board.
Related Reading: How To Time The Dogecoin Bottom And When The Price Will Reach $2
Adding to the bearish outlook for the cryptocurrency, analyst Kabuki argued on X (formerly Twitter) that Bitcoin is still in a “Bear Cycle,” despite the partial recovery seen since the start of the year after brief periods of relief.
Kabuki’s analysis suggests another bearish phase could unfold over the next few weeks, and he has highlighted specific price targets for the cryptocurrency. He points to $71,000 “in days,” and then a much lower target of $42,000 in June, which could mean a further 45% drop in BTC’s price from current levels.
Featured image created with OpenArt, chart from TradingView.com
Frequently Asked Questions
Here is a list of FAQs about the Bitcoin price drop to 76000 written in a natural easytounderstand tone with clear answers
General BeginnerLevel Questions
1 Wait did Bitcoin really crash to 76000
Yes Bitcoins price dropped to around 76000 during a sharp selloff This was a significant decline from its previous highs but its important to remember that Bitcoin is known for its volatility
2 Why did Bitcoin drop so much
There isnt one single reason but a combination of factors fear of stricter government regulations a broader selloff in tech stocks and large investors cashing out their profits after the price hit alltime highs earlier in the year
3 Is Bitcoin dead now
No Bitcoin has crashed by 50 or more several times in the past and has always recovered to set new records A drop to 76000 is a major correction but not the end of Bitcoin
4 Should I buy Bitcoin now that its cheap
That depends on your risk tolerance Some investors see a dip as a sale and buy more Others prefer to wait until the market stabilizes Never invest money you cant afford to lose
5 What does 76000 mean for regular people like me
It means Bitcoin is now more affordable than it was a few weeks ago If you were thinking about buying a small amount the entry price is lower But it also means anyone who bought at 90000 is currently losing money on paper
Intermediate Advanced Questions
6 What exactly triggered the Meltdown to 76000
The immediate trigger was a massive liquidation cascade When Bitcoin fell below a key support level automated trading bots and margin traders were forced to sell their positions to cover losses This created a domino effect pushing the price down rapidly
7 Was this a Black Swan event or predictable
It was partly predictable Many analysts warned that Bitcoin was overbought and due for a correction However the