TLDR
- Bitcoin has pulled back below $85,000, down 2% in the last 24 hours
- Nearly $200 million in liquidations occurred, with $131 million from long positions
- Bitcoin’s open interest decreased by 4.45%, reaching $52.81 billion
- Analysis suggests “whale manipulation” may be capping Bitcoin price at $87,500
- U.S. spot Bitcoin ETFs recorded $165.75 million in net inflows, with BlackRock leading
Bitcoin has fallen below the $85,000 mark, showing a pullback within a rising channel pattern. The price is currently around $84,135, forming a price rejection candle that signals an extended pullback.
The cryptocurrency is down by 2% over the past 24 hours. This drop below $85,000 points to weakening bullish momentum in the market.
Technical indicators are showing signs of a potential further decline. The price failed to maintain dominance at the 23.60% Fibonacci level at $84,841.
The MACD and signal lines have crossed negatively on the 4-hour chart. This crossover could be a signal for increased selling pressure in the short term.
Market liquidations are approaching $200 million over the last 24 hours. Long liquidations account for $131 million of this total, showing that many traders betting on price increases have been forced to close positions.
Futures Market Shows Changes in Trader Sentiment
Bitcoin’s open interest has decreased by 4.45%, reaching $52.81 billion. The long-to-short ratio now shows a subtle rise in bearish positions, standing at 0.9861.
Despite these changes, the funding rate continues to fluctuate. The current open interest is at 0.0051%, which still reflects some bullish sentiment toward long positions.
Alphractal, a crypto analytics platform, noted that whales have shifted from locked positions to new open short contracts. This change happened as Bitcoin briefly 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 spike signals an increase in market leverage, which could lead to more price volatility.
Higher leverage in the market raises the risk of mass liquidations. These liquidations could happen if the price moves sharply in either direction.
ETF Inflows Show Strong Institutional Support
Institutional support for Bitcoin appears to be growing stronger. 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.
Some ETFs did see outflows during this period. Bitwise had outflows of $17.40 million, while Grayscale Bitcoin Trust saw $7.98 million leave the fund.
This marks the fifth consecutive day of inflows for U.S. spot Bitcoin ETFs. This consistent institutional interest could help support Bitcoin prices despite the current pullback.
Possible Price Manipulation by Whales
Analysis from Material Indicators suggests that Bitcoin’s price may be facing manipulation. They point to “spoofing” activity on the Binance exchange as a factor limiting upside.
According to their analysis, large blocks of sell orders are being placed above the current price. These orders are preventing Bitcoin from rallying past $87,500.
The liquidity in question is currently placed around $89,000. This pattern of order placement is a known manipulative technique called “spoofing” used by large traders or “whales.”
This manipulation may explain why Bitcoin hasn’t been able to break above $87,500 despite favorable market conditions. The price seems to be capped by these large sell orders.
Price Outlook: Support and Resistance Levels
Based on the 4-hour price chart, Bitcoin may retest the local support trendline near $83,000. If this support level fails to hold, further correction to around $78,350 is possible.
The $84,000-$85,000 region is considered crucial for maintaining bullish momentum. Losing this support could lead to visiting lower liquidity clusters.
On the upside, a bullish rebound could challenge the long-standing resistance trendline. Based on Fibonacci levels, a breakout rally could extend to around $95,350, which is the 61.80% Fibonacci level.
Traders are also watching the 200-day simple moving average and exponential moving average. These key bull market trendlines are around $85,000, and bulls are trying to flip them to support.
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