Bitcoin's $1.3B Liquidation Cascade: Is the $75K–$80K Zone the Cycle’s Last Stand?

If you’re a trader who slept through Saturday, you missed the kind of carnage that turns crypto Twitter into a digital therapy session. Bitcoin, which had been holding a smug $86,000 just days ago, got dragged down to $76,000 in a liquidity cascade that wiped out $1.3 billion in leveraged bets. The headlines are already calling it the 'final dip' of the cycle, but if you’ve traded more than one Bitcoin bear market, you know the only thing final about crypto is the way it keeps surprising you.

Let’s get the facts straight. According to ambcrypto.com, the weekend saw a 'freefall' as Bitcoin’s price tumbled to $76,000, with a swift bounce to $78,000 by Monday morning. Derivatives traders, usually the last to blink, finally took their foot off the leverage pedal. News.bitcoin.com reports open interest in Bitcoin futures fell sharply as the market reset. Meanwhile, PlanC, a well-followed analyst, called the $75,000–$80,000 zone the 'deepest pullback' of this cycle, suggesting the pain might be over—unless, of course, it isn’t.

The crypto press is full of post-mortems. Cointelegraph points out that Bitcoin is now mirroring old bear market patterns, with realized price flipping to resistance and price forecasts dipping below $50,000. Coindesk notes that put options betting on a slide below $75,000 are suddenly as popular as the moonshot $100,000 calls that dominated the post-election euphoria. Even Michael Saylor, the perennial Bitcoin bull, is making noise about buying more, though his company’s ability to fund another mega-purchase looks questionable after its equity took a hit.

But the real story isn’t just the numbers—it’s the mood. The weekend’s $2.5 billion wipeout across Bitcoin and altcoins wasn’t blamed on the Fed or Middle East tensions. Instead, this was a classic case of too much leverage chasing too little liquidity. The market got crowded, the exits got small, and algos did what algos do best: they turned a routine correction into a waterfall.

If you’re looking for historical parallels, this isn’t March 2020. The macro backdrop is different. There’s no pandemic panic, just a slow grind as liquidity tightens globally. Treasury issuance is draining cash from risk assets, as Seeking Alpha notes, and the S&P 500’s late-week reality check after touching 7,000 shows that risk appetite is getting fragile everywhere, not just in crypto.

The derivatives reset is significant. In previous cycles, a flush of this size often marked the start of a new uptrend, but only after the weak hands are washed out. The put/call ratio on Bitcoin options has spiked, signaling traders are hedging downside aggressively. Funding rates have normalized, and open interest is down, which means the market is less likely to see another forced liquidation in the immediate term. But with realized price now acting as resistance, bulls will need to do more than tweet memes to get Bitcoin back above $86,000.

Strykr Watch

The technicals are a minefield. Immediate support sits at $75,000, the bottom of the weekend’s flush. Below that, $72,000 is the next major level, with $68,000 as the line in the sand for bulls. Resistance is stacked at $80,000, with a wall of sellers at $83,000 and the real test at $86,000. The 50-day moving average is rolling over, and RSI is still in the low 40s, suggesting momentum is weak. If Bitcoin can reclaim $83,000 on volume, the narrative flips bullish again. Until then, every bounce is suspect.

The risk, as always, is that the market gets complacent. If $75,000 fails, there’s little structural support until the low $60,000s. The options market is pricing in another 10% move in either direction over the next week, so expect volatility to stay elevated. For traders, this is a time to keep stops tight and position sizes small.

The opportunity here is for disciplined traders who can fade the panic and buy the blood. If you’re nimble, a long entry near $76,000 with a stop just below $75,000 offers a decent risk/reward. Target $83,000 for a quick swing, with a moonshot at $86,000 if the market gets its mojo back. For the bears, a break below $75,000 opens the door to $72,000 and then $68,000. Options traders can look at selling strangles or buying volatility, as the market is likely to stay jumpy.

Strykr Take

This isn’t the end of the cycle, but it might be the end of the easy money. The leverage flush has reset the board, but the burden is now on bulls to prove they can hold $75,000 and reclaim lost ground. If they fail, the next leg down could get ugly. For now, the risk/reward favors tactical longs with tight stops, but don’t get married to your position. The only thing certain in this market is that certainty is always punished.

Strykr Pulse 48/100. The market is bruised but not broken. Threat Level 4/5. Volatility remains high, and another liquidation event is possible if $75,000 fails.