Bitcoin price enters ‘controlled volatility’ phase – What this means for $90K
From liquidations to a bear trap: BTC’s volatile setup.
The crypto market is stuck in a volatility feedback loop.
Unsurprisingly, Bitcoin [BTC] price is acting as the main volatility engine. BTC’s price action has been extremely choppy lately, fueling talk of another potential flash-crash, especially with no clear signs of a bottom forming.
Recently, BTC dumped from $89k to $87k and then wicked back to $91k, all within a four-hour candle.
Given this setup, BTC’s thin bid-side liquidity makes sense, even though it is still trading roughly 30% below its ATH.
Net losses return
Notably, the market reaction says it all.
Bitcoin’s Net Realized Profit/Loss has flipped red again, indicating that exchange netflows are being driven by HODLers selling at a loss rather than profits. That’s a classic tell of capitulation pressure creeping back in.
Meanwhile, ETF flows remain muted, even with BTC’s Coinbase Premium Index ticking green, reinforcing the market’s risk-off posture. In short, Bitcoin price action is still too volatile, putting the $90k level at risk.
Bitcoin price loop raises questions about whale moves
It’s been almost two months since the October crash rattled the market.
And yet, the Bitcoin price still hasn’t reclaimed six figures.
However, on the daily chart, Bitcoin has formed three lower highs, each sparking a short-term rebound: $80k, $83k, and $88k since mid-November.
In this environment, leveraged positions got hit the hardest. Analysts flagged $171 million in longs and $71 million in shorts liquidated in a single four-hour stretch, sparking chatter about possible market manipulation.
The 24-hour chart makes it clear, with nearly $500 million liquidated.
Combine that with Bitcoin’s recent choppy price action (as AMBCrypto noted earlier) and these liquidations raise the question of whether smart money is deliberately keeping BTC in a loop to deleverage the market
Looking at BTC’s Open Interest (OI), the thesis checks out. It is down $30 billion from its $94 billion October peak. In this setup, whale activity looks deliberate, turning the current Bitcoin price loop into a bear trap.
Final Thoughts
- BTC’s Net Realized Profit/Loss has flipped red again, showing holders are selling at a loss.
- Liquidations raise the question of whether smart money is deliberately keeping BTC in a loop.
