Bitcoin, Frustrated by $1.2 Billion Sell-off... "May Exceed $80,000 and Then Face a Bigger Crash"

▲ Bitcoin (BTC) Decline/AI Generated Image

The direct cause behind Bitcoin (BTC) plummeting again just as it was about to break through $80,000 was identified not as news, but as a massive sell-off in the derivatives market.

According to crypto-focused media outlet CryptoPotato on April 28 (local time), Bitcoin sharply dropped by approximately 2.5% just before breaking $80,000, falling below $78,000. This decline occurred without any clear external negative news, with the internal liquidity structure of the market acting as the direct trigger.

Analyst Darkfost pointed to the derivatives market as the core reason for the decline. Specifically, about $1.2 billion worth of sell orders flooded Binance in just one hour, causing prices to sharply fall. The total selling pressure across all exchanges was estimated to have expanded to approximately $1.35 billion.

Market structure is also cited as a factor that increased downward pressure. Funding rates have consistently remained negative for several weeks, dropping to an accumulated level of approximately -7%. This indicates an excessive concentration of short positions, which, while creating short-term downward pressure, is also interpreted as a sign of structural instability.

Technically, the $80,000 to $82,000 range is analyzed as a strong resistance zone and a critical area where large-scale liquidations are concentrated. The recent decline is strongly characterized as a readjustment following liquidity resolution, and is interpreted as a position-clearing process rather than a trend reversal.

The market has also raised the possibility of greater volatility following a short-term rally. Trader Doctor Profit predicted that Bitcoin could experience a strong decline after rising to the $83,000 to $87,000 range. He stated that he is preparing to expand his short positions in that range.

Currently, the Bitcoin market has entered a phase where liquidity and position structure, rather than direction, dictate prices. The possibility of increased volatility is continuously being raised within a range-bound market where upper liquidations and lower support absorption repeat.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*