Bitcoin repeatedly tests the $92,000 mark; what signals are hidden behind the $440 million liquidation?

Bitcoin repeatedly tested the critical support level of $92,000, with a large-scale liquidation on Monday and a rapid recovery on Tuesday, releasing an important signal: this is not panic selling, but market self-adjustment. Behind the $440 million daily liquidation and $243 million ETF outflows, the technical pattern is quietly building a bullish signal.

The Real Cause of Volatility: Profit-taking or Institutional Cooling

On Monday, Bitcoin fell below $92,000, triggering a single-day liquidation of $440 million, with passive closing of long positions reaching $288 million. This number looks alarming, but the context is key — Bitcoin has risen nearly 12% from the low of close to $84,500 in December, so short-term traders locking in profits at high levels is a natural reaction.

More noteworthy is the change in institutional funds. Shortly after the IBIT fund under BlackRock recorded its largest single-day inflow in three months, Bitcoin spot ETFs immediately turned into net outflows, with 12 ETFs collectively losing $243 million in one day. The timing is interesting — this isn’t panic selling, but more like institutions adjusting their positions.

The Market Structure Is Intact, and That Matters

On Tuesday, Bitcoin quickly rebounded to $94,400, a seven-week high, then retreated to around $91,540, but ultimately stabilized near $92,670. What does this rapid recovery of the $92,000 support level indicate?

The overall market structure remains robust. The crypto Fear & Greed Index stays at 49 in the neutral zone — not at the 28 of “Extreme Fear” nor the 70+ of “Greed.” Related news shows that the attitude of US institutions is also shifting — Coinbase premium gap has returned to zero, indicating US institutions are resuming purchases; the BTC long-short ratio remains above 1.0, with traders maintaining a net bullish bias.

These details are important because they suggest this correction is more about liquidity clearing than panic selling.

Technical Patterns Tell a Story: “Double Bottom” Reversal Signal

From a technical perspective, Bitcoin’s daily chart is forming a “double bottom” pattern — a common bullish reversal signal. The current price has not yet effectively broken above the neckline at $94,480, so short-term volatility may persist, but technical indicators are actively signaling positivity.

Key Technical Indicators

• Aroon Up remains above 85%, indicating a strong upward trend
• MACD has crossed above zero and continues upward, hinting at ongoing bullish momentum
• The double bottom pattern is not yet complete, but the two tests of the $92,000 support without breaking through demonstrate strength

Key Levels to Watch

If Bitcoin successfully breaks through the resistance zone of $94,400–$94,500, the price could challenge $99,000 again. Conversely, if the rally fails, a pullback to the $88,000–$85,000 range is possible, which was a key support zone in December last year.

Macro Environment Is Quietly Changing

Related news also reveals some macro shifts. After the Venezuela event, Bitcoin surged nearly 5% to break through $90,000, indicating rising demand for Bitcoin as a hedge. Meanwhile, the Federal Reserve is expected to fine-tune interest rates by the end of 2025 to curb inflation, creating a supportive policy environment for crypto markets.

Institutional participation is also increasing — CME Bitcoin futures open interest rebounded over 10% from early-year lows, returning to the $10 billion mark; Binance holdings increased from $11.3 billion to $12.2 billion. This shows institutions are not retreating but adjusting strategies.

Summary

Bitcoin’s repeated testing of the $92,000 level is fundamentally a market self-adjustment rather than out of control. The $440 million liquidation and $243 million ETF outflows may seem fierce, but market structure, institutional attitude, and technical patterns tell a story: this is profit-taking and position adjustment, not a trend reversal.

The key is whether it can break through the $94,400–$94,500 resistance zone next. If successful, $99,000 becomes the new target; if not, support at $88,000–$85,000 remains. Short-term volatility is inevitable, but the medium-term bullish logic remains intact.