By Nermeen Nabil Khear 
TLDR
- Bitcoin has pulled back from $87,500 to below $85,000, dropping around 2% in 24 hours
- Market manipulation by whales is suspected, with “spoofing” tactics creating artificial resistance
- Liquidations are approaching $200 million, with long positions accounting for $131 million
- Despite volatility, Bitcoin ETFs recorded their fifth consecutive day of inflows totaling $165.75 million
- Technical indicators suggest possible further decline to $80,000 support level
Bitcoin has experienced a pullback to below $85,000 after reaching a 13-week high of $87,500 on March 20. The cryptocurrency is now trading at around $84,135, reflecting a 2% decrease over the past 24 hours.
The decline coincides with increasing market liquidations. These have approached $200 million in the last 24 hours. Long position liquidations account for $131 million of this total.
Technical analysis shows Bitcoin is testing a long-standing resistance trendline. The cryptocurrency is forming price rejection candles on the 4-hour chart. This signals an extended pullback might be in progress.
Market indicators are turning bearish. The MACD and signal lines have crossed negatively. This potentially signals a sell-off in the short term.
Bitcoin’s open interest has decreased by 4.45%. It has reached a low of $52.81 billion in the futures market. The long-to-short ratio shows a subtle rise in bearish positions, now at 0.9861.
Despite these bearish signals, the funding rate remains positive. It currently stands at 0.0051%. This reflects ongoing bullish sentiment toward long positions despite traders paying extra premium.
Whale behavior appears to be influencing price action. Analysis from Material Indicators suggests that Bitcoin’s inability to break through $87,500 is due to market manipulation. Large blocks of sell orders have appeared on exchange order books.
$BTC Still fighting that Daily 200MA/EMA and previous support. Looking at the higher timeframe, the bulls would want to get back above ~$89K-$90K to really turn this around.
Key level to hold on the daily candle is $84K-85K to not risk falling back to the local lows. https://t.co/28umCuHo6w pic.twitter.com/Lm7XshoqTr
— Daan Crypto Trades (@DaanCrypto) March 20, 2025
This tactic is known as “spoofing.” It involves placing large orders with no intention of fulfilling them. The practice creates artificial resistance levels and prevents upward momentum.
The open interest-to-market cap ratio has spiked again. This signals an increase in market leverage. Higher leverage could trigger a new wave of volatility and potential mass liquidations.
Institutions Buy as Whales Suppress
On the institutional front, support for Bitcoin appears to be strengthening. U.S. spot Bitcoin ETFs recorded $165.75 million in net inflows on March 20. This marks their fifth consecutive day of positive flows.
BlackRock led ETF acquisitions with an inflow of $172.14 million. VanEck, Fidelity, and Grayscale Bitcoin Mini Trust also recorded positive inflows. However, some ETFs like Bitwise, Grayscale Bitcoin Trust, and Franklin Templeton saw outflows.
Looking at support levels, the current recovery will likely retest local support near $83,000. A breakdown below this level could push Bitcoin toward $78,350. This would represent a deeper correction from recent highs.
Conversely, a bullish rebound could challenge the resistance trendline again. Based on Fibonacci analysis, a successful breakout could extend to the 61.80% level around $95,350.
The 200-day simple moving average (SMA) and exponential moving average (EMA) sit around $85,000. Bulls are currently attempting to flip these key bull market trendlines to support.
The European trading session has shown a lack of momentum. This reinforces the theory that price suppression is influencing market activity. Recent gains from the Asian session have been erased.
For now, Bitcoin remains in a critical phase. Traders are watching whether it can overcome the apparent resistance at $87,500. The alternative is a deeper correction toward $80,000 where previous buying interest emerged.
The post Bitcoin (BTC) Price: Technical Analysis Shows Rejection at $87,500 Level appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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