BTC falls below the 95,500 mark. Can it hold at 92,000 amid continuous selling by US funds?

Latest Market Review

Bitcoin’s price rapidly declined to around 95,560 in the short term, a significant drop from previous highs. According to the latest data, BTC is currently priced at 87.64K, with a 24-hour change of +1.73%. This sharp decline is driven by multiple shocks caused by systemic pressures in the US capital markets.

Mass Capital Outflows from the US, Three Major Pressures Simultaneously Manifest

Wall Street Continues Selling, Asian Markets Struggle to Absorb

The Coinbase premium index has been in negative territory for three consecutive weeks, indicating large-scale sell-offs by US investors. Since US market prices are lower than Asian markets, sell-offs occur whenever the US market opens, while daytime rebounds are often short-lived recoveries at the end of a strong sell-off. Fidelity data shows that this round of selling is closely related to year-end tax optimization strategies—investors are selling coins to handle taxes, which is “legal cashing out” rather than panic selling, but the scale is enough to influence short-term trends.

Liquidity Contraction, High-Risk Assets Are Prioritized for Disposal

The US government shutdown directly froze about $5 billion in market liquidity, and the cooling of December rate cut expectations further tightened the funding environment. US stocks have fallen by 15%, while crypto-related stocks have dropped by as much as 20%. Under liquidity stress, high-risk assets like Bitcoin naturally become the first to be liquidated. These three pressures are dominated by the US financial environment, with little sign of relief in the short term.

Technical Analysis Confirms Downward Trend Continues

On the 1-hour chart, BTC has broken below the key resistance level of 98,000 near 95,560 and is repeatedly testing the support at 96,159. The MACD indicator’s white and yellow lines have formed a death cross and are both below the zero line, a pattern typically indicating continued downside exploration.

Although there is some technical support in the 95,000-96,000 range, the probability of a stable rebound is limited. More concerning is that if the price breaks below the 95,000 level with increased volume, the next target could be the 92,000 bottom support.

Strategies and Risk Alerts

For Non-Position Holders: Do not rush to buy the dip near 95,000; wait for a confirmed increase in trading volume before considering entry.

For Trapped Investors: When the price rebounds to the 97,000-98,000 range, consider actively reducing positions—suggested to cut 1/3 of holdings to lower the cost basis and avoid holding through a potential reversal.

For All Participants: Set a stop-loss at 94,500. Once triggered, exit decisively. Do not hold onto the hope of “waiting for a rebound,” as the current market rhythm offers little room for buffer.

Overall, BTC faces significant short-term pressure, but oversold conditions may trigger technical rebounds. The key to defending the 92,000 level lies in holding the 95,000 line. Investors should closely monitor the Federal Reserve’s upcoming policy signals and market liquidity changes.