Bitcoin (BTC) is once again under pressure after being rejected near the $86,500 level, slipping 2.80% to trade just below $84,000. The recent selloff is being attributed to a mix of profit-taking by whales, aggressive short sellers, and reports of China preparing to offload seized crypto holdings. As market volatility spikes, traders are asking a critical question: Will Bitcoin crash down to $80K or even revisit $65K, or is this just a healthy correction before another breakout?
China’s Crypto Unwind Adds Pressure
According to reports, local Chinese governments are exploring ways to execute the liquidation of around 194,000 BTC worth approximately $16 billion. Even though China has banned trading and exchanges with crypto assets within its territory, this time the blow is being weighed down under macroeconomic tensions due to the ever-escalating U.S.-China trade war, which is shaking investor sentiments.
This puts China into the category of the second-largest Bitcoin holder after the U.S. The move attests to its irony with the strategic yet contradictory stance of acquiring crypto assets. However, the prospect of China flooding the market with billions in BTC has aroused fears of a possible supply shock.
Whale Dumping and Short Positions: Market Caught in a Tug-of-War
Further down the line for the bears, according to analyst Ali Martinez, many of the whales emerged out of positions possibly due to profit-booking and uncertainty in the global scenario. This continued decline in whale activity points to a decline in investor confidence and increasing risk-off sentiment. Meanwhile, more than $600 million worth of short positions will be targeted for liquidation at the rise of BTC above $86,900, creating the possibility of a short squeeze that could set off an explosive upward movement.
Key Technical Levels to Notice
Currently, Bitcoin is facing a mighty resistance at the Kumo Cloud with the daily Fair Value Gap, according to Titan of Crypto, a leading technical analyst. These indicators have historically served as critical inflection points for price direction.
Immediate Support: $81,000
Bitcoin may retest the level of $81,000 because it coincides with both the Kijun line and a very important trendline. In the case that BTC holds at that support zone, it may act as a springboard for launching a bullish reversal, aiming at reaching even higher maxima above $87,000.
Down Breakage Scenario: $75,000 to $65,000
In case BTC fails to hold $81K, more consolidation will set the price around $75,000. A clear break below this level will expose to $65,000 support, which previously served as an important accumulation level in previous corrections.
What’s Next for Bitcoin Price?
The current price dynamics of Bitcoin, on the downside, are subject to the onslaught of various macro factors, particularly geopolitical tensions, whale movements, and influences like government-level crypto holdings. Considering the technicals, a possible retest of critical support levels must occur; yet, it seems that broad sentiment, in the end, will hold sway in determining whether BTC goes on a bullish run or deeper into a market correction.
Whale activity, government policies surrounding crypto, such as China sell-offs, and technical setups are fundamental to investors who want to identify Bitcoin’s next price move.
