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Bitcoin Price Prediction: Bulls mount $721M leverage amid US Government sell-off scare

Source Fxstreet

Bitcoin price plunged below $92,000 on Thursday, on course to close trading at a 40-day low.
US authorities approved the sale of 69,370 BTC seized from the Silk Road marketplace.
Following a 10% price correction in the last 48 hours, BTC bulls have deployed $721 million in leverage to avert a breakdown below $90,000.

Bitcoin price dipped to $91,800 on Thursday, marking its lowest in 43 days, dating back to December 9. Derivatives markets data shows concentrated BTC long positions around the $90,000 mark, as bulls move to halt the downtrend.

Bitcoin losses hit 10% as markets price in $6.5B sell-off from US Government

Bitcoin price suffered a sharp decline, dropping over 10% within two days as the market volatility intensified on Thursday.

Investor sentiment, already fragile following hotter-than-expected JOLTs jobs data, faced another bearish shock as news surfaced of an impending $6.5 billion Bitcoin sell-off by the United States (US) Government.

The US Government has reportedly received clearance to liquidate 69,370 BTC seized from the infamous Silk Road marketplace.

Court documents revealed that Chief US District Judge Richard Seeborg denied a motion to block the forfeiture, allowing the Department of Justice to move forward with selling the crypto haul.

The scale of the sell-off has spooked traders, amplifying bearish headwinds in a week that began on a downtrend.

Bitcoin price action, January 8 2025. | BTCUSDT (Binance)

BTC price reacted swiftly, plunging from $95,060 to $91,800 as shown in the chart above.

Market speculation is now rife on if the sell-off occurs before President-elect Donald Trump's inauguration, who has campaigned on a pro-Bitcoin stance.

Trump's proposals include leveraging seized funds to establish a national Bitcoin reserve, adding an ironic twist to the gGovernment's crypto liquidation narrative.

Bulls mount $721 lLeverage to avert $90K breakdown

Following a 10.5% loss over the past two days, Bitcoin holders are making desperate moves to keep prices from falling below the critical $90,000 threshold.

While overall crypto market sentiment remains bearish, bullish traders are attempting to establish a support wall at this key level.

Coinglass’ Liquidation Map data highlights the total leverage deployed on long and short positions near significant price points.

This metric offers insight into pivotal BTC price support and resistance levels to monitor in the short term.

Bitcoin Liquidation Map | Coinglass

At first glance, the chart shows that short traders currently dominate, with over $3.55 billion in active short positions compared to $1.3 billion in long positions.

However, a closer look reveals that BTC bulls have concentrated over $721 million in active leverage positions around the $90,000 mark—accounting for nearly 60% of active long BTC futures contracts.

During market dips, large leverage positions near key price levels can prompt traders to make covering spot purchases to avoid liquidation losses.

Essentially, holders of the $721 million in BTC long contracts around $90,000 are now incentivized to make covering spot purchases.

If selling pressure eases, these covering buys could trigger a mild rebound in BTC prices in the coming days.

Bitcoin price forecast: Holding $90,000 support could trigger an early rebound

Bitcoin price outlook shows signs of a potential reversal as the double bottom pattern at $90,000 signals a possible rebound.

This technical formation, historically known for marking trend reversals, is further validated by the rising BTC trading volume, indicating heightened market participation and buying interest.

Beyond that, the VWAP (Volume Weighted Average Price) line trending above the current price also indicates buying pressure is building up.

Bitcoin price forecast | BTCUSD

Conversely, bearish scenarios remain plausible if Bitcoin fails to sustain above the critical $90,000 support level.

The chart reflects dominance by short traders, with significant selling pressure that could drive prices lower.

A breakdown below this level would negate the double bottom’s bullish implications, potentially dragging BTC toward $84,000, where further liquidity may be tested.

For now, the double bottom and increasing volumes provide cautious optimism for a rebound.

A sustained break above $93,217 (VWAP level) could open the path toward $100,000, aligning with the bullish target implied by the double bottom structure.

Disclaimer: For information purposes only. Past performance is not indicative of future results.

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Bitcoin Slides 5% as Sellers Lean In — Can BTC Reclaim $88,000?Bitcoin has dropped back below $88,000 after rolling over from $90,500, with price still trading under the 100-hour Simple Moving Average. The sell-off found a floor at $85,151, and BTC is now consolidating near that base, but rebounds are facing pressure from a bearish trend line around $89,000. Bulls need to retake $88,000–$89,000 to ease downside risk; failure to do so keeps $85,500–$85,000 and then $83,500 in play, with $80,000 as the deeper “line in the sand.” Bitcoin (BTC) is back in damage-control mode after a sharp pullback wiped out recent gains. The price failed to reclaim the $90,000–$90,500 band, rolled over, and slid through $88,500 before briefly dipping under $87,000. Buyers did show up around $85,000, but the rebound so far looks more like stabilization than a clear trend reversal. Bitcoin dips hard, finds a bid near $85,000（h3） BTC’s latest move lower began when it couldn’t build follow-through above $90,000 and $90,500. Once that upside stalled, sellers took control and pushed price down through $88,500. The slide accelerated enough to spike below $87,000, but the market didn’t free-fall. Bulls defended the $85,000 zone, printing a low at $85,151. Since then, Bitcoin has been consolidating below the 23.6% Fibonacci retracement of the drop from the $93,560 swing high to the $85,151 low — a clue that the bounce is still shallow and that sellers haven’t fully backed off yet. Structurally, BTC is still on the back foot: It’s trading below $88,000, and It remains below the 100-hour Simple Moving Average, keeping short-term trend pressure pointed downward. Resistance is layered, and $89,000 is the problem area（h3） If bulls try to turn this into a recovery, they’ll have to climb through multiple ceilings in quick succession. First, BTC faces resistance around $87,150, followed by a more meaningful barrier near $87,500. From there, the market’s attention snaps back to $88,000 — the level BTC just lost and now needs to reclaim. A close back above $88,000 would improve the tone, but it doesn’t solve the bigger issue: there’s a bearish trend line on the hourly BTC/USD chart (Kraken feed) with resistance near $89,000, which also lines up with the next technical hurdle. If BTC can push through $89,000 and hold, the rebound could extend toward $90,000, with follow-through targets at $91,000 and $91,500. But until price clears that $88,000–$89,000 zone, rallies are at risk of being sold rather than chased. If BTC fails to reclaim resistance, the downside path is clear（h3） The near-term bear case is simple: if Bitcoin can’t climb back above the $87,000 area and keep traction, sellers may attempt another leg lower. Support levels line up like this: Immediate support: $85,500 First major support: $85,000 Next support: $83,500 Then $82,500 in the near term Below that, the major “don’t break this” level is still $80,000. If BTC slips under $80,000, the risk of acceleration to the downside increases significantly — not because it’s magic, but because it’s the kind of psychological and structural level that tends to trigger forced de-risking. Indicators: momentum still leans bearish（h3） The intraday indicators aren’t offering much comfort yet: Hourly MACD is losing pace in the bearish zone. Hourly RSI remains below 50, suggesting sellers still have the upper hand on short timeframes. So while the $85,000 defense held for now, the market hasn’t flipped bullish — it’s just stopped bleeding.

Author Mitrade

11 hours ago

Bitcoin has dropped back below $88,000 after rolling over from $90,500, with price still trading under the 100-hour Simple Moving Average. The sell-off found a floor at $85,151, and BTC is now consolidating near that base, but rebounds are facing pressure from a bearish trend line around $89,000. Bulls need to retake $88,000–$89,000 to ease downside risk; failure to do so keeps $85,500–$85,000 and then $83,500 in play, with $80,000 as the deeper “line in the sand.” Bitcoin (BTC) is back in damage-control mode after a sharp pullback wiped out recent gains. The price failed to reclaim the $90,000–$90,500 band, rolled over, and slid through $88,500 before briefly dipping under $87,000. Buyers did show up around $85,000, but the rebound so far looks more like stabilization than a clear trend reversal. Bitcoin dips hard, finds a bid near $85,000（h3） BTC’s latest move lower began when it couldn’t build follow-through above $90,000 and $90,500. Once that upside stalled, sellers took control and pushed price down through $88,500. The slide accelerated enough to spike below $87,000, but the market didn’t free-fall. Bulls defended the $85,000 zone, printing a low at $85,151. Since then, Bitcoin has been consolidating below the 23.6% Fibonacci retracement of the drop from the $93,560 swing high to the $85,151 low — a clue that the bounce is still shallow and that sellers haven’t fully backed off yet. Structurally, BTC is still on the back foot: It’s trading below $88,000, and It remains below the 100-hour Simple Moving Average, keeping short-term trend pressure pointed downward. Resistance is layered, and $89,000 is the problem area（h3） If bulls try to turn this into a recovery, they’ll have to climb through multiple ceilings in quick succession. First, BTC faces resistance around $87,150, followed by a more meaningful barrier near $87,500. From there, the market’s attention snaps back to $88,000 — the level BTC just lost and now needs to reclaim. A close back above $88,000 would improve the tone, but it doesn’t solve the bigger issue: there’s a bearish trend line on the hourly BTC/USD chart (Kraken feed) with resistance near $89,000, which also lines up with the next technical hurdle. If BTC can push through $89,000 and hold, the rebound could extend toward $90,000, with follow-through targets at $91,000 and $91,500. But until price clears that $88,000–$89,000 zone, rallies are at risk of being sold rather than chased. If BTC fails to reclaim resistance, the downside path is clear（h3） The near-term bear case is simple: if Bitcoin can’t climb back above the $87,000 area and keep traction, sellers may attempt another leg lower. Support levels line up like this: Immediate support: $85,500 First major support: $85,000 Next support: $83,500 Then $82,500 in the near term Below that, the major “don’t break this” level is still $80,000. If BTC slips under $80,000, the risk of acceleration to the downside increases significantly — not because it’s magic, but because it’s the kind of psychological and structural level that tends to trigger forced de-risking. Indicators: momentum still leans bearish（h3） The intraday indicators aren’t offering much comfort yet: Hourly MACD is losing pace in the bearish zone. Hourly RSI remains below 50, suggesting sellers still have the upper hand on short timeframes. So while the $85,000 defense held for now, the market hasn’t flipped bullish — it’s just stopped bleeding.

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Beginners

Bitcoin Price Prediction: Bulls mount $721M leverage amid US Government sell-off scare

Bitcoin losses hit 10% as markets price in $6.5B sell-off from US Government

Bulls mount $721 lLeverage to avert $90K breakdown

Bitcoin price forecast: Holding $90,000 support could trigger an early rebound

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