Tag: Bitcoin (BTC) Price

After recent liquidations, traders have piled into shorts again, pushing Bitcoin funding rates deeper into negative territory.

Aggregated funding rate data across major cryptocurrency exchanges revealed that the current wave of short positioning is the most extreme since August 2024, a period that coincided with a major bottom for Bitcoin, according to new analysis from Santiment.

At that time, funding rates sank deeply into negative territory as traders overwhelmingly positioned for further downside, amidst intense fear and bearish sentiment across the market.

Extreme Bear Bets Before 2024 Reversal

Instead of continuing lower, Santiment found that prices reversed sharply, and the forced unwinding of overcrowded short positions helped fuel a strong recovery. Following that August 2024 low, Bitcoin went on to climb roughly 83% over the next four months. The move illustrated how extreme negative funding conditions can emerge right before powerful rebounds.

Santiment explained that funding rates are a mechanism within perpetual futures markets, and are designed to keep futures prices aligned with spot prices. These rates represent small, periodic payments exchanged between traders. When funding is negative, short sellers pay long traders, and when it is positive, long traders pay shorts.

When aggregated funding rates across exchanges fall far below zero, it means that a major share of market participants is heavily positioned for declining prices, often driven by fear, uncertainty, and doubt. Such imbalances can create conditions ripe for sharp counter-moves.

Many short positions are opened using leverage, meaning traders borrow capital to amplify potential gains. If prices move higher instead of lower, losses on these leveraged shorts can accumulate rapidly. Once losses breach predefined thresholds, exchanges automatically liquidate those positions to manage risk.

When large numbers of shorts are forced to close simultaneously, the resulting wave of buying can accelerate price increases, a trend commonly referred to as a short squeeze. The deeper funding rates fall into negative territory, the more crowded short positions become, and the greater the potential fuel for a sudden reversal.

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Aftermath of October Binance Liquidations

The analytics platform also pointed to recent market activity surrounding a liquidation event on Binance on October 10, 2025, when a wave of long liquidations contributed to a sharp drop in BTC’s price. In the aftermath of that move, traders increasingly shifted into short positions as they expected further downside, which ended up recreating a similar imbalance that could be observed through funding rate data.

Current aggregated metrics suggest sentiment has once again leaned heavily in one direction. While Santiment stated that heavy short positioning does not guarantee an immediate rally, it described the present environment as one of high risk, where positioning pressure could flip into rapid upside volatility if shorts are forced to unwind.

Based on broader sentiment indicators, it added that these short positions are unlikely to close voluntarily. This makes a liquidation-driven move higher a more probable resolution.

Santiment says extreme fear after Bitcoin’s $60K drop helped trigger a rebound, with a potential push toward $70K.

Bitcoin (BTC) slipped to around $60,000 earlier today before rebounding toward $65,000, following one of the sharpest daily sell-offs in its history.

The move has split traders between those calling the rebound a temporary technical reaction and others pointing to extreme fear as a setup for a recovery toward $70,000.

Fear Spikes as Bitcoin Rebounds From Sell-Off

On February 6, Santiment noted that social media mentions calling for Bitcoin to go “lower” or “below” shot up after the drop to $60,000, a pattern the analytics firm said often appears near short-term price rebounds.

The asset did indeed bounce back to about $65,000, with the uptick coming after what The Kobeissi Letter described as BTC’s first-ever daily drop of more than $10,000, alongside claims that a large leveraged position had been liquidated.

“Is this nothing but a dead cat bounce?” Santiment asked, while positing that enough retail may have been shaken out to justify a quick rally back up to the $70,000s.

The sell-off capped weeks of heavy downside pressure, as CryptoPotato previously reported, with Bitcoin wiping out gains seen after Donald Trump’s re-election and dragging most major altcoins lower. XRP fell 13% on the day, while Ethereum, Solana, and BNB also posted steep losses.

Meanwhile, on-chain and derivatives data are painting a mixed picture beneath the rebound. According to DeFi commentator Marvellous, “smart money” has taken a net short position, while whales and public figures are adopting long positions. The market watcher argued the move looked more like a mechanical response after $2.2 billion in long liquidations than renewed conviction, noting that open interest remained elevated and funding rates had stayed flat.

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Elsewhere, trader Sykodelic highlighted a lopsided liquidation map, claiming the market had cleared most long positions, leaving roughly $29 billion in shorts versus about $100 million in longs over a one-year view.

Price Action Shows Heavy Damage Despite Short-Term Bounce

Bitcoin was trading around the $65,000 level at the time of writing, down nearly 9% in the last 24 hours and more than 21% over the past seven days. Across the previous month, the losses stand close to 30%, pushing BTC about 48% below its peak from October 2025, when it surpassed the $126,000 mark.

Analysts from CryptoQuant have said that the current downturn is developing faster than the 2022 bear market, with their data showing the OG cryptocurrency fell 23% within 83 days of losing its 365-day moving average, compared with a 6% decline over the same period in early 2022.

Santiment added that sentiment toward both Bitcoin and Ethereum (ETH) had turned “extremely bearish,” a condition that can coincide with short-lived relief rallies when retail fear stays elevated.

For now, traders remain divided. Some see the concentration of short positions and fearful sentiment as fuel for a move back toward $70,000, while others have warned that without a collapse in open interest and prolonged sideways trading, the recent bounce may only be the precursor to another test of lower levels.

Burry says Bitcoin is behaving like a speculative trade, and not a hedge, which raises risks for companies holding massive BTC reserves.

Bitcoin’s (BTC) slide below $80,000 has intensified worries that a wider downturn in the broader crypto sector could be imminent.

Market experts believe that the recent slide in BTC’s price may not be an isolated correction, but a development that could seriously destabilize corporate balance sheets and magnify systemic risk if it continues to fall.

Major Market Casualty

Michael Burry has issued a stark warning that Bitcoin’s continued decline could erase significant value across the market, and the greatest risk is concentrated among companies that have built large corporate treasuries around the asset, which have mushroomed over the years.

In the latest Substack post following the latest crypto sell-off, “The Big Short” investor, Burry, said BTC’s drop below important technical levels opens the door to cascading stress not only within crypto markets but also across adjacent financial sectors.

He said that the world’s largest crypto asset is failing to meet a critical expectation often placed on it, that is, acting as a hedge against currency debasement. Instead, Burry said its recent behavior more closely resembles that of a speculative risk asset, particularly given its correlation with the S&P 500. He said gold and silver rallied on geopolitical uncertainty and dollar weakness, but Bitcoin did not follow those macro signals.

Burry also predicted that further downside could have severe consequences for Bitcoin treasury companies that accumulated BTC aggressively during higher price ranges. He highlighted the possibility that another 10% decline could leave major holders such as Michael Saylor’s Strategy billions of dollars underwater, and potentially cut them off from capital markets, thereby increasing bankruptcy risk.

Such outcomes, according to the investor, could amplify losses beyond individual firms and contribute to broader market fallout. Burry additionally noted that Bitcoin’s weakness has coincided with recent pressure in precious metals.

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Galaxy Digital’s Zac Prince also questioned the long-term viability of Bitcoin treasury companies, which raise capital to hold BTC on their balance sheets while promising yield. Speaking on TheStreet Roundtable, Prince said these models rely on risky financial engineering rather than BTC’s native value. He compared them to past schemes that created tokens to generate Bitcoin and said that paying a premium for such structures does not make them sustainable.

He even explained that while some firms might pivot to revenue-generating activities, many will still struggle to justify their valuations, and added that businesses should focus on real operations first and treat BTC as a treasury strategy, not the primary driver.

Optimism Wanes

Bitcoin has been under tremendous pressure, and many analysts believe that there could be more pain ahead instead of a much-anticipated recovery.

Former Binance CEO Changpeng “CZ” Zhao also said that while he had been positive about a BTC super cycle just weeks ago, current market sentiment has made him less confident. Speaking on Binance’s social platform, he highlighted the rise of fear, uncertainty, and doubt (FUD) in the community and admitted that the emotional intensity has left him uncertain about BTC’s near-term prospects.

Raoul Pal said that Bitcoin’s collapse reflects a temporary US liquidity drain, not a broken crypto cycle or failed market.

Bitcoin has plunged almost 40% from its peak of $126,000. While it currently trades a little above $77,000, prices remain fragile, and investors are positioning for a deeper drawdown.

Amidst intense bearish sentiment, Raoul Pal, founder and CEO of Global Macro Investor, said that widely circulating claims that BTC and the broader crypto market are “broken” represent a false narrative driven by temporary liquidity conditions rather than a failed cycle.

Bitcoin and SaaS

Pal said the dominant market story indicates the crypto cycle is over, and prices are collapsing due to factors such as exchange issues, institutional actions, or structural flaws. But he described this view as an “alluring narrative trap” which has been reinforced by continued daily price declines. Analysis showed that the UBS SaaS Index and Bitcoin have followed nearly identical price patterns, which essentially indicates a common underlying factor rather than asset-specific problems.

According to Pal, that factor is US liquidity, which has been constrained as a result of several technical and fiscal factors. He pointed to the completion of the US Reverse Repo drain in 2024, followed by Treasury General Account (TGA) rebuilds in July and August that lacked an offsetting liquidity injection, which ended up resulting in a liquidity withdrawal.

Pal stated this liquidity shortage has also contributed to weak ISM readings. While Global Total Liquidity typically has the strongest long-term correlation with Bitcoin and US equities, he argued that US Total Liquidity is currently more influential because the US is the primary source of global liquidity. The GMI founder added that global liquidity has led US liquidity this cycle and is beginning to turn higher, which is expected to feed through to US liquidity and economic indicators.

Bitcoin and SaaS have been particularly affected because they are among the longest-duration assets and therefore most sensitive to liquidity conditions.  The rally in gold absorbed marginal liquidity that might otherwise have flowed into riskier assets such as Bitcoin and SaaS, leaving insufficient liquidity to support all asset classes at the same time, he said.

The current US government shutdown has intensified the liquidity drain, as the Treasury did not draw down the TGA after the previous shutdown and instead added to it. He called the resulting environment a temporary “air pocket,” which has caused severe price pressure.

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However, Pal said signs indicate the shutdown could be resolved soon, and characterized it as the final major liquidity obstacle. He reiterated that additional liquidity factors, such as adjustments to the enhanced supplementary leverage ratio (eSLR), partial TGA drawdowns, fiscal stimulus, and eventual rate cuts, remain ahead.

Hawkish Fed Fears

Some market commentators have hinted that expectations of a more cautious pace of rate cuts under incoming Fed chair Kevin Warsh have also weighed on markets. But Pal rejected claims that Warsh represents a hawkish policy stance, and instead called the narrative incorrect and rooted in outdated comments. He believes Warsh’s approach aligns with policies favoring rate cuts and economic expansion, while maintaining balance sheet stability due to reserve constraints.

Despite the recent turmoil in the market, Pal said that he remains strongly bullish on 2026.

BTC dropped below $76,000 on Saturday evening.

The Saturday massacre has only intensified in the past few hours, as bitcoin just plunged to $76,000 for the first time since the initial tariff threat in April last year.

As such, the cryptocurrency extended its massive losses to almost $15,000 in just days, as it traded above $90,000 on Wednesday.

The latest flash crash took place as a single entity was liquidated for $1 billion, according to data from the Kobeissi Letter.

BREAKING: Bitcoin falls -$3,000 in 5 minutes as a massive levered long position worth $1 billion was liquidated at 1:43 PM ET. pic.twitter.com/T3RwBdr17Q

— The Kobeissi Letter (@KobeissiLetter) January 31, 2026

CoinGlass reports different data as of press time. It shows that the single-largest liquidated position took place on Hyperliquid and was worth a whopping $222 million. It involved the ETH-USD pair.

The total value of wrecked positions has shot up to more than $2.5 billion on a daily basis. Nearly all of that came in the past 12 hours. Naturally, longs are responsible for the biggest share, with $2.41 billion of such positions wiped out in the past 24 hours.

Bitcoin’s price crash to $76,000 meant that Strategy’s massive BTC position briefly turned red for the first time in over two years. Nevertheless, the cryptocurrency has rebounded slightly since that multi-month low, and now sits around $78,000, putting the company’s stash slightly in the green again.

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BREAKING: MicroStrategy’s, $MSTR, Bitcoin position officially turns red as Bitcoin falls below $76,000. pic.twitter.com/IRZjYzJS8H

— The Kobeissi Letter (@KobeissiLetter) January 31, 2026

Bitcoin falls below $84K after repeated resistance, with analysts warning of a potential drop to $76K amid rising macro and market pressure.

Bitcoin (BTC) has slipped below the $84,000 mark after multiple failed attempts to break above $94,000–$97,000. This drop has raised concerns that a deeper move toward the $74,000–$76,000 zone may follow if the asset fails to recover quickly.

Break Below $84K Raises Caution

Crypto analyst Dami-Defi said Bitcoin has faced “multiple rejections” near $94K–$97K, a zone that has acted as resistance more than once. After another failed breakout, the price fell below $84,000, a level that had held since November.

Dami-Defi added that a daily or weekly close under $84K could lead to further losses. The next area with strong support is between $74K and $76K.

They also mentioned that this drop seems to be part of a larger market trend and not limited to crypto alone, suggesting a wider shift in risk appetite across financial markets.

Past Cycles Point to Possible Deeper Drop

Some analysts believe this decline could echo past bear market cycles. Aralez, a market observer, shared that in 2018, Bitcoin dropped 84% from its previous high. A similar move in this cycle, based on a projected 2025 peak of $126K, could push the price down toward $32K in 2026.

🚨 ALERT:$BTC is preparing for a massive dump to ~$32k

Every cycle, history repeats itself:

– 2017: $19k PEAK → 2018: -84.1%
– 2021: $69k PEAK → 2022: -77.4%
– 2025: $126k PEAK → 2026: -72.2%

Things are about to get worse – Bookmark it… pic.twitter.com/d5JTb8WRyV

— Aralez 🐕 (@0xAralez) January 29, 2026

The market has faced sharp losses recently, with Bitcoin falling over 6% in the past 24 hours. More than 274,000 traders were liquidated, totaling nearly $2 billion (per CoinGlass data).

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Consequently, the price briefly touched levels not seen since April, moving within a daily range of $81,300 to $88,300. At the time of writing, CoinGecko lists Bitcoin at just above $82,600.

Beyond the price action, reports of rising tensions in the Middle East may be adding stress to the crypto market. The deployment of the Abraham Lincoln Carrier Strike Group near Iran has raised concerns about conflict escalation.

At the same time, there are reports that President Trump may nominate Kevin Warsh to lead the Federal Reserve. Warsh has spoken positively about crypto in the past, but traders reacted with caution.

Some Still See a Bullish Setup

Not all market watchers are expecting a deep fall. Analyst Egrag Crypto said that Bitcoin’s larger structure still looks stable. They noted the price is holding above the 21-month EMA and inside a rising channel.

They explained that a move to $62K could be part of regular market movement in an uptrend.

“Only bearish if BTC accepts below it on monthly closes,” they said.

Egrag sees a 60%–65% chance that Bitcoin reaches $200K before any major correction.

Bitcoin trades near $91,500 after failing to hold $92K as RSI drops below 60, putting focus on trend strength and the risk of a cycle shift.

Bitcoin (BTC) is trading around $91,500 after failing to hold above the $92,000 level earlier today. The asset has posted a minor daily gain but is down 1% over the past week.

Analysts are now watching technical signals, especially the RSI, which has dropped below a level that often reflects strength in trend cycles.

RSI Drops Below 60, Trend at Risk

The monthly Relative Strength Index (RSI) has slipped under 60, raising questions about the current phase of the cycle. Analyst Egrag Crypto expected it to stay above that level, saying,

“I expected RSI to hold above 60 and continue toward the 80–90 cycle-top zone.” They added, “We are now in the neutral-to-slightly bearish zone. This area often acts as a decision zone, not a final verdict.”

While the RSI is starting to curve upward, momentum remains uncertain. Egrag noted that reclaiming 60 could bring the bull cycle back into play. If not, the structure may shift toward deeper consolidation, with the next RSI support around 38.

$92K Still Capping Bitcoin Price Action

Bitcoin briefly reached $92,400 on Monday, but soon withdrew. That action was short-lived, and it coincided with the resurgence of tension between US President Trump and Federal Reserve Chair Powell. Since then, BTC has fallen back under the threshold of $92,000.

The $92,000 level remains a key hurdle. Until the asset breaks and holds above it, the chance of a return to the yearly open price increases. Prior analysis also pointed to a possible move toward $70,000 if downside pressure builds in the weeks ahead.

Moreover, Bitcoin continues to trade above a short-term ascending trendline and the 21-day moving average. This structure is helping the price hold its ground near $90,000. Michaël van de Poppe noted,

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#Bitcoin stabilizes and is performing quite well, despite global uncertainties.

The recipe remains the same:

Hold above the 21-Day MA and starts grinding up towards the $94.000 resistance zone.

With everything that’s happening, it’s even strengthening the use case of $BTC. pic.twitter.com/HdEYv0YrPH

— Michaël van de Poppe (@CryptoMichNL) January 12, 2026

The $94,000 level is the next clear resistance. A break above that may open the way toward $100,400 and higher zones. Below current levels, a breakdown would weaken the bullish setup.

Price Range Limits Momentum for Now

Crypto analyst CryptosBatman described BTC’s current move as stuck inside a weekly inside bar pattern. He explained,

“The market is super boring right now… price is moving within the highs and lows of the weekly candle from 17th November.”

Daan Crypto Trades pointed out that Q1 often brings stronger price action for Bitcoin. He noted, “The last time it did awful was in 2018… Q1 does tend to be quite good, especially in recent years.” Traders remain focused on whether BTC can hold above support or if another leg lower is next.

Bitcoin tests $93.5K resistance as analysts watch for a weekly close to confirm a breakout and possible trend shift in early 2026.

Bitcoin (BTC) entered 2026 with a strong start, showing more than 7% gain over the past week. The asset is at around $93,600 at press time, rising 1% in the last 24 hours. Daily trading volume remains high at $51.5 billion.

On Tuesday morning, Bitcoin climbed to its highest level in nearly two months, nearing the $95,000 mark. Unlike previous moves, the weekend rally held through Monday, a change from recent patterns where gains were often erased quickly.

Price Moves Toward Key Resistance

Bitcoin has rebounded from the lower end of its weekly range near $86,200. This level has acted as a support area in the past. The price has now climbed to test the top of this range near $93,500. Analyst Rekt Capital pointed out that a close above this level would mark a potential breakout. The asset is currently trading above the range high, but the weekly close will be crucial.

Notably, the move also comes as BTC breaks above a downtrend line that has been in place since October 2025. This trendline, drawn from lower highs, has now been breached. Holding above $93,500 is seen by many traders as the level that could shift the mid-term picture.

“$93,500 needs to hold as support for mid-term bullish bias,” said Rekt Capital.

Despite recent gains, market analysts remain cautious. Rekt Capital noted that Bitcoin closed its 12-month candle below $93,500. Based on historical cycles, similar levels have remained unbroken for several years until the next halving year.

“If indeed Bitcoin has begun a bear market, price could overextend beyond $93,500 over the coming months… before continuing lower.”

Sykodelic, another market analyst, pointed to strong buying activity driving recent gains. They noted a breakout in the On-Balance Volume indicator and mentioned that Coinbase is showing signs of a spot premium. Still, they added a caution:

“We need to get above and hold $94.5K. If not, we may revisit $89K.”

Macro Trends May Be Shifting

Analyst Lark Davis drew attention to a technical crossover on the US Federal Reserve’s balance sheet. A monthly MACD golden cross has formed, which last occurred in 2019. At that time, Bitcoin began a major rally in the months that followed.

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“Not official QE yet… but it sure looks like QE and smells like QE,” Davis said.

The crossover suggests the Fed’s balance sheet may be expanding again after months of decline. This shift in liquidity may affect markets in early 2026, especially risk assets like Bitcoin.

Michaël van de Poppe identified the $90,000–$91,000 range as a short-term level that needs to hold. This zone also lines up with the 21-day moving average. A failure to hold could lead to a retest of lower levels.

“If that holds and a higher low forms, then we could be looking at $100K,” he commented.

Data from Glassnode shows that Bitcoin is recovering from a correction. The current phase is described as a consolidation, though market conditions remain uncertain. While many metrics are turning positive, some analysts believe this rally could be the final leg before a larger move down.

BTC may rally toward six figures, but an analyst warns that this move could be the final leg before a deep downturn.

Bitcoin (BTC) rose over 1.1% during Monday’s Asian trading session, as it extended its rally toward a fifth straight daily gain. Interestingly, this has been the longest winning streak since early October, as it briefly touched $93,000.

While BTC has defeated short-term bears, a liquidity crisis may still trigger a sharp crash, according to market experts.

Bitcoin Breaks the “Silver Line”

Crypto analyst Doctor Profit identified that Bitcoin has, for the first time in a month, broken above what he calls the “Silver Line.” This is a short-term resistance level that had rejected price advances five times previously. In a detailed weekend report, the analyst said that this breakout was followed by a clear retest and bullish confirmation, which he interprets as BTC defeating short-term bearish pressure and signaling readiness for a further move higher.

Doctor Profit found that this development aligns with his expectations over the past two months. After Bitcoin reached his earlier target of $80,000, he stated that upside levels between $97,000 and $107,000 were still possible before any continuation of a broader downside trend. He reiterated that he began buying BTC around $85,000, with the intention of selling those holdings within the $97,000 to $107,000 range. Based on current price action, he said the market now appears to be attempting this move.

As such, Doctor Profit explained that he is placing multiple short orders across the $97,000-$107,000 zone and described the strategy as dividing trading capital into multiple parts to place staggered short positions. The main aim is to achieve the best possible average entry price. He also said he is keeping earlier short positions from the $115,000-$125,000 range fully open, in case the market moves to those higher levels.

Despite acknowledging the near-term upside, the analyst asserted that he remains fully bearish on Bitcoin overall and continues to target prices below $70,000 in the coming months. He cited macroeconomic factors as crucial support for this view. One major concern highlighted was the Federal Reserve’s $106 billion in overnight repo lending to banks on New Year’s Day. He pointed to changes made to repo lending rules in September 2025, which increased potential liquidity access for individual banks, and called this a sign of deeper financial system stress.

Doctor Profit also said historical patterns show that periods of banking stress and liquidity shortages have often coincided with bear markets. He added that insider selling, pressure on banks, and stress linked to silver markets further reinforce his bearish outlook.

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Bigger Risk Ahead?

Market commentator Mr Wall Street also echoed a similar concern as he tweeted that BTC faces downside risk despite a possible short-term rally amidst geopolitical tensions involving Venezuela and macroeconomic stress. In his latest breakdown, he argued that markets are beginning to price in the risk of a broader global shock, which could pressure risk assets, including BTC.

While he expects a near-term relief rally designed to build liquidity, this move is likely temporary.

Bitcoin historically turns positive in early January, which gives the crypto asset a 2/3 chance of gaining 10% next week.

Bitcoin’s (BTC) struggle in 2025 was real. Despite an almost epic bull run, the October crash exposed the fragility of the rally. Even as the current market sentiment remains bearish, new data suggest that BTC rarely stays negative after the New Year, even following weak year-end transitions like those seen in 2022.

Alphractal founder and CEO Joao Wedson said Bitcoin has a historically strong tendency to turn positive in early January.

Bitcoin’s New Year Effect

In the latest post on X, Wedson argued that the market structure around the New Year transition supports a bullish short-term outlook, despite recent weakness.

Across Bitcoin’s price history, the week following December 31 has seen negative performance only three times, implying a 2/3 probability that BTC ends the first week of January with gains of at least 10%.

This pattern has held even after weak year-end transitions. For instance, back in 2022, Bitcoin initially dropped before rebounding sharply in the following days. Wedson observed that while year-end transitions are generally weak, with notable exceptions during the 2017-2018 and 2020-2021 periods, the days immediately after the New Year often determine whether BTC pulls back or continues higher.

He also broadened his analysis to longer-term cycle behavior, and pointed out that from one halving to the next, Bitcoin consistently records around 109-110 weeks where the Sunday-to-Monday transition starts positively. At the same time, he found that the number of weeks starting with declines has steadily increased across cycles. The analyst estimated around 100 such weeks in the current cycle, which he said makes short-term BTC trading progressively more difficult.

Wedson also described 2025 as the worst year on record for positive weekly starts, as it saw only 21 weeks opening higher compared to 31 that began with declines. This means that accumulation during that period reflected poor timing, as per the analysis. Despite this, he added that Bitcoin’s overall performance in 2025 was comparatively resilient, as it ended the year down 10%, a result that was deemed to be still significantly better than the deep drawdowns seen in 2018 and 2022.

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LTH Accumulation Takes Hold

Supporting Wedson’s short-term outlook, on-chain data reveals that selling pressure from long-term BTC holders remains low. Crypto analyst Axel Adler Junior said the Long-Term Holder (LTH) Distribution Pressure Index has moved into the accumulation zone, which shows minimal selling activity. The index’s Z-score currently sits at -1.628, below the -1.5 threshold that indicates low distribution.

Adler explained that this followed a brief rise in selling on December 10-11, when long-term holder spending increased sharply before easing again within days. Since then, selling activity has stayed low. He added that the seven-day average LTH spending has dropped to around 221 BTC, while SOPR remains above 1 at 1.13, which essentially means that holders are not rushing to sell.

The Bitcoin Development Pledge aligns with the king’s vision of applying modern digital technologies to serve the people of Bhutan and future generations.

The Kingdom of Bhutan has taken its adoption of bitcoin (BTC) a step further by allocating a portion of its reserves to the development of its new special administrative region, Gelephu Mindfulness City (GMC).

According to a press release sent to CryptoPotato, the country will channel 10,000 BTC, worth roughly $1 billion, to support the long-term development of GMC. GMC is a new economic hub designed for mindfulness, sustainability, and innovation.

Bhutan Unveils Bitcoin Development Pledge

Bhutan’s ruler, His Majesty King Jigme Khesar Namgyel Wangchuck, unveiled the Bitcoin Development Pledge via his National Day Address earlier this week. The commitment aligns with the king’s vision of applying modern digital technologies to serve the people of Bhutan and future generations.

The country will assess several approaches that would enable the long-term use of the pledged assets. The options under consideration include collateralising the Kingdom’s bitcoin holdings, implementing yield management strategies, and preserving asset value while holding them long-term.

Bhutan will guide any use of BTC in the GMC by prudence and strong governance, ensuring transparency and capital preservation. The country will prioritize preserving long-term potential while developing the economic hub in a stable and sustainable manner.

Jigdrel Singay, Board Director at GMC, commented on the approach, saying: “Bhutan’s position is that its Bitcoin holdings are intended for the long term, and that commitment is reiterated clearly in the Development Pledge. The specific strategy is still being worked on, and the examples mentioned in the announcement outline the range of responsible options under consideration. There is no change to Bhutan’s long-term stewardship approach toward its Bitcoin reserves.”

GMC to be Powered by Digital Infrastructure

Besides being a mindfulness hub, GMC will also provide regulatory clarity, financial connectivity, and a long-term environment for collaboration. The hub is open to partnerships from both local and international digital asset entities. Bhutan has already integrated digital assets into the hub’s strategic reserves and enabled crypto-based payments across services. The Kingdom has also launched TER, a sovereign-backed token linked to physical gold.

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These efforts build on the country’s track record of being one of the earliest adopters of BTC and digital asset infrastructure. Since 2017, Bhutan has quietly been mining BTC using clean energy.

“As your King, I must ensure that every Bhutanese is a custodian, stakeholder, and beneficiary of GMC…This commitment is for our people, our youth, and our nation,” Bhutan’s ruler stated.

Bitcoin trades near $87K with $85K support and $88K resistance key. Analysts eye $93K breakout or $75K drop if support fails.

Bitcoin is trading near $87,000 at press time, showing a small drop over the past 24 hours and a 4% decline in the past week (CoinGecko). After filling the $88,600 Fair Value Gap (FVG), the asset has pulled back and is now sitting just below that key level.

Analysts are watching $85,000 and $88,000, as the next move may decide whether BTC climbs to $93,000 or drops toward $75,000.

$85K Support and $88K Resistance in Focus

According to Crypto Patel, the cryptocurrency is still following the expected technical path. After filling the $88,600 gap, it failed to push higher and is now trading below it. The $85,000 level is now seen as a major support zone. If that holds, the price could reach the $93,000 Bearish Order Block, which also lines up with the 0.5 Fibonacci retracement.

If BTC fails to stay above $85,000 or reclaim $88,000, pressure may increase. In that case, it could fall toward the $75,000–$76,000 zone. This area has been mapped as a possible support zone with previous buy-side activity.

In addition, chart data from Ali Martinez points to a bearish flag pattern. This setup began with a steep drop, followed by a channel trending upward. The lower edge of that channel has now been broken, and BTC is trading below it. The estimated target, based on the pattern’s size, is near $79,000.

Liquidity Zones May Guide Next Move

Ted noted that there are clusters of liquidity between $80,000 and $83,000 on the downside, and between $92,000 and $93,000 on the upside. He wrote,

“If BTC reclaims the $89,000 level, upside liquidity will be swept first,” but added, “If Bitcoin loses the $85,000 level, the downside liquidity will be taken out before a bounce back.”

However, Bitcoin is still above a major trendline that has shaped its price for the past four years. As long as it stays above that line, the long-term trend remains stable.

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Glassnode shared that BTC is still below the short-term holder cost basis but above deeper realized prices. This keeps Bitcoin in a zone where it has room to move in either direction, depending on whether demand returns or selling increases.

As CryptoPotato reported, large holders are still accumulating. Since November 11, the number of wallets holding at least 100 BTC has increased by 91. At the same time, small wallet numbers are falling. Some older wallets have moved coins, suggesting that some long-time holders may be reducing exposure.