Bitcoin Hits Critical Support at $77,000 as Weekend Selloff Triggers $2 Billion Market Wipeout

Bitcoin’s weekend descent to the $77,000 threshold represents what technical indicators suggest may be the deepest pullback of this correction cycle, as thin weekend liquidity amplified a confluence of macro headwinds that wiped over $2 billion from the cryptocurrency market.

The world’s largest digital asset now trades at $78,875, down 6.07% in the past 24 hours and 11.20% over the past week, testing a critical technical support level that has held significance since Bitcoin’s October 2024 surge above $126,000. This decline has pushed Bitcoin’s market capitalization to $1.57 trillion, while maintaining its 59.09% dominance over the broader cryptocurrency market.

Weekend trading sessions have historically presented heightened volatility for Bitcoin due to reduced institutional participation and thinner order books. This structural weakness became evident as macro repricing pressures, sustained ETF outflows, and cross-asset capital rotation converged during a period when liquidity providers were operating at minimal capacity.

The $77,000 level represents more than psychological support—it marks a technical pivot point where previous institutional accumulation occurred during Bitcoin’s rally phases. A sustained break below this threshold could accelerate selling pressure toward the $70,000-$72,000 zone, where longer-term trend support intersects with key Fibonacci retracement levels.

Bitcoin’s correlation with traditional risk assets has intensified throughout 2026, diverging from its historical safe-haven narrative. While gold has surged above $5,000 per ounce amid dollar weakness and geopolitical tensions, Bitcoin has failed to capture similar flight-to-quality flows. Instead, the cryptocurrency has moved in lockstep with technology equities and leveraged positions.

Institutional behavior patterns reveal the depth of this shift. U.S. spot Bitcoin ETFs recorded their largest weekly redemption in the week ending January 23, with $1.33 billion in outflows. The November-December 2025 period marked the worst two-month performance for Bitcoin ETFs on record, with $4.57 billion in net outflows as institutions rotated capital toward traditional assets.

The current market structure indicates Bitcoin holders are selling at a loss for the first time since October 2023. Onchain analysis reveals older holders are exiting positions while newer participants step in at lower prices—a pattern typically associated with market consolidation rather than trending acceleration.

Federal Reserve policy expectations continue to weigh on Bitcoin’s near-term prospects. Stronger U.S. economic data has pushed rate cut expectations further into 2026, reducing the appeal of non-yielding assets like Bitcoin. The potential for a U.S. government shutdown adds another layer of uncertainty, historically pressuring risk assets during periods of political brinkmanship.

Weekend liquidity dynamics played a crucial role in amplifying Bitcoin’s decline. The cryptocurrency’s 24-hour volume of $82.5 billion represents elevated trading activity, but much of this occurred during Asian and European sessions when North American institutional desks remained closed. This thin liquidity environment creates conditions where relatively modest selling pressure can generate outsized price movements.

The broader cryptocurrency market reflected Bitcoin’s weakness, with total market capitalization falling to $2.67 trillion. Major altcoins including Ethereum, Solana, and XRP experienced proportional declines, reinforcing Bitcoin’s role as the sector’s primary risk barometer.

Technical analysis suggests Bitcoin may find immediate support at current levels, with the $77,000-$78,000 range representing a confluence of moving averages and prior resistance-turned-support. However, momentum indicators remain oversold, and the absence of significant institutional buying interest limits near-term recovery prospects.

The path forward for Bitcoin depends largely on institutional flow patterns and macro conditions. Conservative recovery targets suggest a consolidation range between $70,000-$100,000 throughout 2026, with genuine recovery delayed until institutional appetite returns. However, regulatory clarity expected in early 2026 and potential Federal Reserve policy pivots could accelerate this timeline.

Market participants should expect continued volatility as Bitcoin navigates this critical support zone. The weekend’s action reinforces the importance of liquidity timing and the outsized influence of institutional capital flows on Bitcoin’s price discovery mechanism.