Bitcoin Price Stalls Below $78,000 as Analysts Warn of Extreme Volatility

Key Insights:

• Bitcoin price remains below $78,000 as long-term holders sell at an average loss of 20%.
• BTC price gets support from $1.61 billion in ETF buying over four days.
• The price of Bitcoin faces higher volatility after more than $1.6 billion in positions were liquidated.

Bitcoin price stalled below $78,000 after a sharp move higher, while analysts warned that rising volatility could lead to more swings. Strong ETF demand has helped support the market even as some long-term holders sell at a loss.

Bitcoin Price Holds Despite Long-Term Holder Selling

Bitcoin price climbed to $77,600 before pulling back slightly, and it was trading around $77,178.62. The move came as some long-term holders sold their coins below their buying cost to raise liquidity.

Bitfinex, a well-known digital asset trading platform, tweeted that those coins changed hands at an average of 20% below their cost. Selling at a loss can put pressure on a rally by adding more supply to the market. However, the latest move has been different because strong demand has helped take in that supply.