Bitcoin tests $76,060 support amid persistent selloff and short-term seller pressure

Bitcoin (BTC) is trading at $76,060, down 1.77% for the session. The price remains under both near- and medium-term moving averages but holds above its long-term trend level, reflecting ongoing selling pressure amid low volatility.

Highlights

• US Treasury doubled the size of its long-dated bond buybacks to $4 billion per session, increasing market liquidity.
• $1.9 billion flowed into spot Bitcoin ETFs last week, and over $1.2 billion in short positions were liquidated in a short squeeze.
• BTC/USD trades below key moving averages with most indicators showing selling pressure; expected range is $72,315 to $79,805 over the next 2 to 3 days.

Institutional inflows and short squeeze accelerate volatility despite overall pressure

The US Treasury's decision to double the size of its long-dated bond buyback operations to $4 billion per session has added liquidity to the financial system, potentially increasing capital available for investment in risk assets such as Bitcoin, as reported by Cryptobriefing. The past week also saw $1.9 billion in inflows to spot Bitcoin ETFs, reflecting heightened institutional demand, according to The Block. Additionally, over $1.2 billion in short positions were liquidated in a rapid short squeeze, amplifying volatility and affecting intraday dynamics, data from Coinpedia showed. These developments occurred even as price action has remained under broader selling pressure.