TLDR
- Bitcoin has dropped below $85,000, falling approximately 2% in the last 24 hours
- Market liquidations approached $200 million, with long positions accounting for $131 million
- Technical indicators show Bitcoin trading in a rising channel pattern with potential support at $83,000
- Open interest-to-market cap ratio has increased, suggesting higher market leverage and potential volatility
- U.S. spot Bitcoin ETFs recorded five consecutive days of inflows, with BlackRock leading at $172.14 million
Bitcoin has fallen below the $85,000 mark, signaling a gradual decline in bullish momentum. The leading cryptocurrency is down approximately 2% over the past 24 hours as it continues to trade within a rising channel pattern on the technical charts.
The current price movement shows Bitcoin testing a long-standing resistance trendline. After reaching a 13-week high of $87,500 on March 20, BTC has pulled back 4.4% to around $84,000 at time of writing.
This pullback has failed to maintain dominance at the 23.60% Fibonacci level at $84,841. Bitcoin is forming its second-highest price rejection candle, which could signal an extended pullback on short-term charts.
Technical indicators are showing mixed signals. The MACD and signal lines have crossed negatively, potentially signaling a sell-off. On the 4-hour chart, Bitcoin’s pullback found support at the 50 EMA, which has prevented a sharper decline so far.
However, the daily RSI remains slightly below 50. This indicates that bearish momentum could continue in the short term unless buying strength increases.
Liquidations in the crypto market are approaching $200 million over the last 24 hours. Long liquidations account for $131 million of this total, showing the impact of the recent price drop on leveraged traders.
Bitcoin’s open interest has decreased by 4.45%, reaching a low of $52.81 billion. The long-to-short ratio has shown a subtle rise in bearish positions, now standing at 0.9861.
Despite these bearish indicators, the funding rate continues to fluctuate. The open interest currently stands at 0.0051%, reflecting some bullish sentiment toward long positions despite the extra premium being paid.
Market analysis platform Alphractal has noted an increase in bearish positions within the Bitcoin market. According to their recent reports, whales have shifted from locked positions to new open short contracts as Bitcoin surpassed $87,000 in the short term.
🐳Whales Enter Short Positions on Bitcoin as Leverage Increases!
Whales have decided to close their long positions and open shorts as BTC surpassed $87k in the short term. Additionally, the Open Interest/Market Cap ratio is rising again, signaling increased market leverage. This… pic.twitter.com/vMFFdcWUph
— Alphractal (@Alphractal) March 20, 2025
The open interest-to-market cap ratio has spiked again. This signals an increase in market leverage, which could lead to new waves of volatility and potentially trigger mass liquidations if price movements become too sharp.
Market Analysts
Some market analysts suggest that Bitcoin’s price may be deliberately suppressed by large traders. Large blocks of sell orders, commonly known as “spoofing,” have appeared on exchange order books, keeping Bitcoin’s price contained within a specific range.
This tactic creates the illusion of strong resistance and prevents upward momentum from building. Material Indicators has identified what they call “price suppression from Spoofy the Whale” with liquidity blocks positioned around $89,000.
Bitcoin ETFs
Despite the short-term volatility in the derivatives market, institutional support for Bitcoin continues to grow. On March 20, the total daily net inflows for U.S. spot Bitcoin ETFs reached $165.75 million.
BlackRock led the way with an inflow of $172.14 million. VanEck, Fidelity, and Grayscale Bitcoin Mini Trust also recorded positive inflows of $11.90 million, $9.19 million, and $5.22 million, respectively.
However, some ETF providers saw outflows. Bitwise, Grayscale Bitcoin Trust, and Franklin Templeton’s Bitcoin ETFs saw outflows of $17.40 million, $7.98 million, and $7.31 million, respectively.
As U.S. spot Bitcoin ETFs record their fifth consecutive day of inflows, this institutional support could potentially spark a new Bitcoin price rally despite the current pullback.
According to the 4-hour price chart, the current recovery will likely retest the local support trendline near $83,000. A breakdown below this support level could lead to a further correction to the $78,350 support level.
On the other hand, if bulls regain control, a bullish rebound could challenge the long-standing resistance trendline. Based on Fibonacci levels, a breakout rally could potentially extend to the 61.80% Fibonacci level, around $95,350.
