Bitcoin Holds Strong Above $95K Despite Record Selling Pressure

Heavy Selling, Trade War Fears Shake Crypto—but Bitcoin Stays Resilient
Bitcoin Battles Bearish Trends: Will It Break $100K or Fall Below $93K?
Whales Short Bitcoin as Trade War Looms—Is a Short Squeeze Coming?
Bitcoin Faces Its Toughest Test Since 2022—But a Breakout Looms

Bitcoin has managed to stay above the $95,000 mark despite facing its heaviest selling pressure since 2022. On February 9, Bitcoin briefly dipped to $94,726 before quickly rebounding. André Dragosch, Head of Research at Bitwise Europe, highlighted the severity of the situation: “We’ve just seen the highest level of selling pressure on Bitcoin spot exchanges since the collapse of Three Arrows Capital (3AC) in June 2022. Yet, Bitcoin is still holding near $100,000.”

Echoes of 2022’s Crypto Crisis
The 3AC collapse had ripple effects throughout the crypto industry, triggering bankruptcies for major lenders like BlockFi, Voyager, and Celsius. Before Terra’s downfall, 3AC had exchanged around $500 million worth of Bitcoin with the Luna Foundation Guard, amplifying market fragility.

Whales Are Betting Against Bitcoin
Large Bitcoin holders, commonly known as whales, have ramped up their short positions, signaling growing bearish sentiment. The Whale Position Sentiment metric has plummeted from 0.9 to 0.4 since mid-January, reflecting a sharp decline in investor confidence. If Bitcoin drops below $93,000, over $1.7 billion in leveraged long positions could be liquidated, according to CoinGlass. A further fall might push Bitcoin down to $91,500, with $89,270 as a critical support level.

Global Tensions Adding to Market Instability
Trade tensions between the U.S. and China have further shaken investor confidence. The U.S. recently imposed a 25% tariff on aluminum and steel imports, triggering a crypto market sell-off that saw the total market cap drop from $3.15 trillion to $3.10 trillion before rebounding to $3.13 trillion. Investors are closely watching the planned meeting between U.S. President Donald Trump and Chinese President Xi Jinping, initially scheduled for February 11 but now facing potential delays. The outcome of these talks could have significant implications for Bitcoin’s future trajectory.

Is a Short Squeeze on the Horizon?
Despite the bearish outlook, analysts suggest that a short squeeze could be imminent. If Bitcoin rallies, short sellers may be forced to close their positions, potentially driving prices higher. On the technical front, Bitcoin is forming a symmetrical triangle pattern on the four-hour chart—a classic indicator of a potential breakout. The 50-day Simple Moving Average at $97,619 is acting as resistance. A breakout above this level could propel Bitcoin to $99,575, $102,558, and even $105,851 if bullish momentum continues.

Key Levels to Watch

Resistance: $97,619 (50-day SMA), $99,575, $102,558, $105,851
Support: $95,313, $93,000, $91,500, $89,270
If Bitcoin fails to hold support at $95,313, selling pressure could intensify, pushing prices lower. Analysts note that Bitcoin remains highly sensitive to macroeconomic factors, including Federal Reserve policy changes and global trade developments. With Bitcoin’s correlation to traditional financial markets increasing, its price is more vulnerable than ever to shifts in the global economic landscape.

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