Bitcoin News: Inverted Cup and Handle Pattern Emerges, $160 Million Liquidation Fuels Market Panic

Recently, Bitcoin prices have remained high with sustained oscillations. Over the past month, the sideways trading pattern has gradually evolved into a classic inverted cup and handle technical formation, raising market concerns about potential downside risks. Meanwhile, large-scale liquidation events have occurred frequently, and bullish sentiment is noticeably under pressure.

Data shows that Bitcoin’s price once rebounded from $86,000 to an intraday high of $90,165, but then quickly retreated to around $86,600. Over the past month, Bitcoin has been oscillating within the $82,000 to $95,000 range, with no clear direction. Currently, the price is still down more than 30% from the all-time high set in October this year, and market confidence has significantly weakened.

The liquidation pressure in the derivatives market has become a key factor suppressing Bitcoin’s price movement. According to Coinglass data, in the past 24 hours alone, the crypto market has seen liquidations exceeding $540 million, with Bitcoin-related liquidations around $160 million. Since mid-October, multiple high-leverage liquidation events have occurred, triggering chain reactions of forced liquidations that caused rapid price declines and increased market volatility.

Institutional capital flows also signal a bearish outlook. Data from SoSoValue shows that since December, the net inflow into US Bitcoin spot ETFs has been only about $21 million, significantly lower than the strong capital inflows seen in previous months, reflecting a clear cooling of institutional allocation appetite.

On the macroeconomic front, the Federal Reserve has recently adopted a cautious stance on interest rate cuts. Market expectations for the pace of future rate reductions have been lowered, putting pressure on risk assets including Bitcoin. Additionally, the correction in AI concept stocks has dragged down the Nasdaq index, amplifying risk-averse sentiment.

From a technical perspective, the daily chart shows that Bitcoin has formed an inverted cup and handle pattern and has broken below several key moving averages. The short-term moving averages have crossed below the long-term ones, indicating that bearish momentum is dominant. The Aroon indicator shows a prevailing downtrend. If the price breaks below key support levels, a retest of the $76,400 zone cannot be ruled out.

However, if the price can effectively break through the resistance zone of $94,000 to $95,000 in the future, it could reverse the current bearish structure and open up upside space for the market.