Bitcoin Frustrated by $1.2 Billion Bomb... "Could Surpass $80,000 and Then Face a Larger Crash"

▲ Bitcoin (BTC) drop/AI-generated image

The direct cause behind Bitcoin (BTC)'s sudden drop again, just as it was on the verge of breaking $80,000, was not news but a sell-off bomb in the derivatives market.

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

Analyst Darkfost identified the derivatives market as the core reason for the decline. Specifically, a sell-off of approximately $1.2 billion flooded Binance in just one hour, causing the price to sharply reverse. The total selling pressure across all exchanges was estimated to have expanded to about $1.35 billion.

Market structure is also cited as a factor that increased downward pressure. Funding rates have continuously remained negative for several weeks, dropping to an accumulated level of approximately -7%. This indicates an excessive concentration of short positions, which causes short-term downward pressure but is also interpreted as a signal of a structurally unstable state.

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

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

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

*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.*