Bitcoin Slides Under $78K: Bulls Vanish as Warsh Nomination and Thin Liquidity Rattle Crypto

If you were looking for a hero’s return to the Bitcoin bull camp this weekend, you missed it. The world’s largest cryptocurrency, long the darling of risk-on sentiment and late-night CNBC segments, just slid below $78,000 for the first time since April. The move was as subtle as a sledgehammer, with liquidity so thin you could drive a truck through the order book. The trigger? President Trump’s nomination of Kevin Warsh as the next Fed Chair, a name that sends shivers down the spines of anyone who remembers 2017’s hawkish detours.

The Bitcoin selloff wasn’t a slow bleed. It was a trapdoor moment, with price dropping from the mid $80,000s to sub-$78,000 in less than 36 hours. According to TokenPost, the weekend saw a cascade of forced liquidations and profit-taking, exacerbated by the kind of weekend liquidity gap that makes even the most hardened HFT shops wince. Jim Cramer, never one to miss a headline, openly wondered where the Bitcoin bulls had gone as the price action turned from ‘buy the dip’ to ‘pray for a bounce’.

MicroStrategy, the perennial Bitcoin permabull, signaled it might double down yet again, with a dividend hike to 11.25% on its STRC token. But even that failed to stem the tide. The market’s collective shoulder shrug was palpable. Meanwhile, memecoins like BONK cratered 18%, and XRP flirted with the $1 cliff, as risk appetite evaporated across the board.

This isn’t just about crypto. Stock futures stumbled in sympathy, with CNBC reporting that the silver and Bitcoin selloffs had traders rethinking the AI trade and risk assets in general. It’s a reminder that, for all the talk of digital gold, Bitcoin still dances to the tune of macro volatility and central bank politics.

The context here is rich. Bitcoin is supposed to be the uncorrelated asset, the hedge against fiat mischief. Yet, every time the Fed so much as sneezes, the entire crypto complex gets a cold. Warsh’s nomination is particularly spicy. He’s remembered for his hawkish bent, and even the rumor of a more aggressive Fed is enough to send Bitcoin bulls running for cover.

Historically, weekends have been a minefield for crypto. Thin liquidity, fewer market makers, and a penchant for headline-driven panic mean that moves get amplified. This weekend was textbook. The selloff was sharp, the bounce tepid, and the narrative now shifts to whether this is a healthy flush or the start of something uglier.

The technicals are ugly. Bitcoin sliced through $80,000 like it wasn’t even there. The next real support sits around $75,000, with a psychological air pocket below that. RSI is oversold, but that’s cold comfort when the order book is a ghost town. Funding rates have reset, but open interest remains elevated, suggesting there’s more pain possible if the dominoes keep falling.

Sentiment is in the gutter. The Strykr Pulse reads a grim Strykr Pulse 32/100 with a Threat Level 4/5. Bulls are MIA, and the only buyers left are the ones who can’t afford to sell. The risk is that a further flush takes us into the low $70,000s, triggering another round of forced selling and margin calls across the ecosystem.

But there’s opportunity here for the brave. The last time Bitcoin saw a weekend washout of this magnitude, it set up a multi-week rally as shorts got greedy and the market mean-reverted. The key is timing. Step in too early, and you’re catching a falling knife. Wait for signs of stabilization—a reclaim of $80,000, a surge in spot volumes, or a flush in open interest—and the risk/reward starts to look interesting.

Strykr Watch

The technical map is straightforward, if not exactly reassuring. Immediate support sits at $75,000, a level that held during the April swoon. Below that, $72,000 is the line in the sand. Resistance is now $80,000, which will act as a magnet for any relief rally. The 200-day moving average is lurking at $77,500, and a close below that would embolden the bears further. RSI is in the low 30s, signaling oversold, but momentum is negative and the path of least resistance is still down. Funding rates have normalized, but the perpetual swap basis is flat, showing little conviction from either side.

If you’re trading this, watch for a capitulation wick below $75,000, followed by a sharp reversal. That’s the classic crypto bottom signal. If, instead, we see a slow grind lower with no real bounce, the risk is a drawn-out bleed into the low $70,000s. Keep an eye on spot volumes—if they spike on a bounce, it’s a sign of real buying, not just shorts covering.

The risk factors are obvious. Warsh’s confirmation hearings could turn into a hawk-fest, with every soundbite another nail in the crypto coffin. If the Fed signals a more aggressive tightening path, Bitcoin could see another leg lower. Thin liquidity remains a problem, especially on weekends. And if open interest doesn’t reset, we’re one liquidation cascade away from a full-blown panic.

On the flip side, the opportunity is in the mean reversion. If Bitcoin can reclaim $80,000 and hold it, the shorts will scramble, and we could see a quick move back to $85,000. MicroStrategy’s rumored buying could act as a catalyst, especially if spot volumes pick up. For the patient, buying a flush below $75,000 with a tight stop is a classic asymmetric bet. Just don’t expect an easy ride.

Strykr Take

This is what a proper crypto panic looks like. The market is spooked, liquidity is thin, and the headlines are all doom. But that’s exactly when the best trades set up. Wait for the flush, watch for the reversal, and don’t get cute with leverage. The bears have the ball, but the clock is ticking. When the bounce comes, it’ll be violent. Just make sure you’re not the last one in.