Major Sell-Off Fails to Break Key Support Level
Bitcoin has maintained its position above the critical $95,000 mark, despite facing the most intense selling pressure since 2022. The cryptocurrency briefly dipped to a one-week low of $94,726 on 9 February before staging a recovery, according to data from Cointelegraph Markets Pro.
This resilience is particularly notable given the scale of selling, which rivalled that seen during the collapse of Three Arrows Capital (3AC) in 2022, according to André Dragosch, head of research at Bitwise Europe.
BTC/USD, 1-month chart.
“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,” Dragosch stated in a 10 February post on X.
Analysts suggest that Bitcoin’s ability to withstand such pressure may indicate “seller exhaustion,” with the market absorbing the influx of sell orders without a dramatic collapse.
Impact of the Three Arrows Capital Collapse
The comparison with the 3AC crisis highlights the severity of the current market conditions. The Singapore-based hedge fund, which once managed over $10 billion in assets, collapsed in 2022 after making high-risk trades, including a $500 million Bitcoin exchange with the Luna Foundation Guard.
The fund’s failure triggered a domino effect, leading to the bankruptcy of major crypto lenders such as BlockFi, Voyager, and Celsius, all of whom had significant exposure to 3AC.
$93K Support Level Critical Amid Trade War Fears
While Bitcoin has rebounded, investor sentiment remains fragile due to global trade war concerns. The recent announcement of new import tariffs by both the United States and China has intensified economic uncertainty.
Market analysts warn that a fall below the crucial $93,000 support level could result in significant volatility. Data from CoinGlass indicates that such a drop would trigger the liquidation of over $1.7 billion in leveraged long positions across exchanges.
Ryan Lee, chief analyst at Bitget Research, predicts that if Bitcoin breaches this threshold, it could decline further to $91,500. Escalating trade tensions could even push Bitcoin below $90,000 in the short term, despite its reputation as a hedge against traditional financial instability.
Trump-Xi Meeting Delayed Amid Market Uncertainty
Traders are closely monitoring developments in US-China trade negotiations, as these could significantly impact global markets, including cryptocurrencies.
BTC: Intraday spot buying minus selling volume. Source: André Dragosch
Former US President Donald Trump was set to meet with Chinese President Xi Jinping on 11 February to discuss trade tensions. However, according to a 4 February Wall Street Journal report citing unnamed US officials, the meeting is likely to be delayed.
Uncertainty surrounding the talks has further weighed on market confidence, with investors bracing for potential economic disruptions that could influence Bitcoin’s price trajectory.
Despite these headwinds, Bitcoin’s ability to hold above $95,000 signals strong underlying demand. However, with geopolitical and economic pressures mounting, the coming weeks will be critical in determining whether Bitcoin can maintain its resilience or succumb to further market shocks.
