Can Bitcoin defend the critical US$76,500 foundation zone before the September 11 inflation data triggers another massive liquidation cascade?

Bitcoin is trading near US$77,500, encountering resistance around this level. Ethereum is also struggling, with the price of the cryptocurrency testing a crucial support at US$2,400. Both assets are under pressure from macroeconomic factors, particularly rising energy costs and inflation expectations. Institutional demand remains strong, with U.S. spot ETFs tracking a significant net inflow of US$216.7 million on September 1.

This institutional buying provides a solid foundation for the market. High leverage amplifies volatility, with total perpetual open interest surging 18.72% in a single day before the sector reversed. This led to US$98.71 million in liquidations. Long positions were hit hardest, accounting for US$85.34 million in liquidations. Technical indicators suggest bearish short-term momentum, with Bitcoin testing the lower Bollinger Band near US$77,473 and the RSI at 40.85.

To move the trend in favor of buyers, Bitcoin must reclaim the US$78,262 level. A failure to hold the US$76,500 to US$77,000 foundation zone could lead to a deeper drop toward US$75,000. Traders are awaiting key economic data, including the August employment report and September 11 inflation data, to gauge future monetary policy.

Ethereum showed a more violent unwind, losing over US$70 million in long positions within an hour. The correlation between Bitcoin and Ethereum remains strong, highlighting their shared role as inflation hedges. The sector is currently facing a clash between resilient underlying demand and short-term economic headwinds.