The Bitcoin market is experiencing extreme volatility with prices plummeting to $89,900 before a slight recovery to around $90,700. This sharp correction reveals a complex interplay of massive liquidations, aggressive selling by whales, and suspicions of large-scale manipulation involving major players like BlackRock and Coinbase.
The main catalyst behind this Bitcoin crash is a cascade of liquidations. On-chain data shows a massive accumulation of leveraged long positions (bullish bets) in the $89,500 to $90,300 zone. This area has become a prime target for market makers. By pushing the price just below this threshold, they trigger forced selling of these positions, which amplifies the decline and creates a domino effect. It’s a classic purge, but one of rare violence, designed to “clean” the market of excess leverage before a potential new move.
Meanwhile, we’re observing a concerning divergence: while retail investors rush to buy the dip, whales (large wallets) are selling aggressively. This is a typical pattern at market tops, where the most informed players distribute their holdings to a crowd of less experienced buyers. Fear sentiment is at its peak, even higher than during previous lows, indicating extreme tension in the market.
Beyond the simple mechanics of liquidations, accusations of more sophisticated manipulation are emerging. A dynamic involving BlackRock, the world’s largest asset manager, and Coinbase, one of the major exchanges, is being called into question. According to several analysts, the scheme would be as follows:
This strategy, which has reportedly been in place for over a week, would explain Bitcoin’s difficulty maintaining a bullish trend. The only way for the market to resume its upward trajectory would be a slowdown in these outflows from BlackRock’s ETFs. Yesterday’s session, which saw no such outflows, coincided with a temporary lull.
The bounce observed from $89,900 might be nothing more than a flash in the pan. This is likely a “short covering rally,” a technical rebound caused by short sellers buying back their positions to take profits, rather than a new wave of fundamental buying. The real test for Bitcoin lies at the $93,600 level, which corresponds to the yearly open price.
As long as Bitcoin fails to reclaim this level and transform it into support, the market will remain in a “gray zone” with a high risk of further decline. A failure at this level would confirm that selling forces still have control and that the liquidation hunt could resume, with potentially much lower targets.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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