Bitcoin holds $95K support despite heavy selling pressure

From cointelegraph by Zoltan Vardai

Bitcoin is steadily trading above the key $95,000 psychological support despite one of the largest intraday selling events since 2022.

Bitcoin’s price staged a significant reversal after it briefly bottomed at an over one-week low of $94,726 on Feb. 9, Cointelegraph Markets Pro data shows.

Bitcoin proved significant price resilience, considering that it witnessed the largest daily selling pressure since the collapse of Three Arrows Capital (3AC), according to André Dragosch, head of research at Bitwise Europe.

The research lead wrote in a Feb. 10 X  post :

“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.”

Bitcoin’s price resilience may signal “seller exhaustion,” added the researcher.

The collapse of 3AC, a Singapore-based crypto hedge fund that once managed over  $10 billion worth  of assets, sent shockwaves through the cryptocurrency market in 2022.

3AC exchanged roughly  $500 million worth of Bitcoin  with the  Luna Foundation Guard  or the equivalent fiat amount in LUNC just weeks  before Terra imploded .

The series of liquidations for 3AC had a catastrophic impact on crypto lenders such as BlockFi, Voyager and Celsius. Many of the crypto lenders had to eventually file for bankruptcy themselves due to exposure to 3AC.

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Bitcoin momentum hinges on $93,000 support due to $1.7 billion in liquidations

Bitcoin investor sentiment remains pressured by  global trade war concerns  following new import tariffs announced by the United States and China.

While Bitcoin temporarily fell below $95,000, a correction below the key $93,000 support may cause significant downside volatility due to the growing crypto market leverage.

A potential Bitcoin correction below $93,000 would liquidate over $1.7 billion worth of cumulative leveraged long positions across all exchanges,  CoinGlass  data shows.

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A correction below the $93,000 support level may trigger a further decline to $91,500, Ryan Lee, chief analyst at Bitget Research, told Cointelegraph.

Escalating trade war tensions could increase economic certainty, which may push  Bitcoin below $90,000  in the short term, despite Bitcoin’s status as a hedge against traditional finance volatility.

Meanwhile, market participants await President Donald Trump’s upcoming discussions with Chinese President Xi Jinping, which are aimed at resolving trade tensions and avoiding a full-scale trade war.

Trump was scheduled to meet President Jinping on Feb. 11, but reports citing unnamed US officials suggest that the meeting would be delayed, according to a Feb. 4 WSJ  report .