Bitcoin is holding above $95,000 despite heavy selling pressure, briefly dipping to $94,726 on Feb. 9 before recovering. The decline marked the highest selling pressure since 2022, according to André Dragosch, head of research at Bitwise Europe. “We have just reached the highest amount of selling pressure on Bitcoin spot exchanges since the collapse of 3AC in June 2022. Yet, the price is still close to $100,000,” he said.
The collapse of Three Arrows Capital (3AC) in 2022 had significant consequences, forcing several crypto lenders, including BlockFi, Voyager, and Celsius, into bankruptcy. Weeks before Terra’s collapse, 3AC had exchanged roughly $500 million worth of Bitcoin with the Luna Foundation Guard.
Bitcoin whales have been increasing their short positions, weakening market sentiment. The Whale Position Sentiment metric shows investor confidence has dropped from 0.9 to 0.4 since mid-January. If Bitcoin falls below $93,000, over $1.7 billion in leveraged long positions could be liquidated, according to CoinGlass data. A further decline could push prices down to $91,500 or lower, with $89,270 as another potential support level.
Trade war concerns between the U.S. and China have contributed to market instability. The U.S. recently imposed a 25% tariff on aluminum and steel imports, triggering a sell-off that decreased total crypto market capitalization from $3.15 trillion to $3.10 trillion before rebounding to $3.13 trillion. Investors are also closely monitoring a planned meeting between U.S. President Donald Trump and Chinese President Xi Jinping. Initially scheduled for Feb. 11, reports suggest it may be delayed. The outcome of these talks could impact economic uncertainty and Bitcoin’s trajectory.
Despite bearish sentiment, a short squeeze remains possible, which could force short sellers to close positions, driving Bitcoin higher. Bitcoin is currently forming a symmetrical triangle on the four-hour chart, signaling a potential breakout. The 50-day Simple Moving Average at $97,619 is acting as resistance. If Bitcoin surpasses this level, it could rise to $99,575, then $102,558, and possibly $105,851 if bullish momentum continues.
If support at $95,313 fails, selling pressure could intensify, driving Bitcoin toward lower levels. Analysts say the cryptocurrency remains highly sensitive to macroeconomic developments, including Federal Reserve policy changes and global trade conditions. Bitcoin’s correlation with traditional financial markets has increased, making it susceptible to broader economic shifts.
