Bitcoin drops below $92,000, triggering $440 million in liquidations, but the "double bottom" signal suggests the rebound is not over?

Bitcoin price recently tested the critical support level of $92,000 again, drawing high market attention. On Monday, amid a large-scale liquidation shock, Bitcoin briefly fell below this support level, with a single-day liquidation amount reaching $440 million. Entering Tuesday, Bitcoin temporarily rebounded to about $94,400, hitting a seven-week high before quickly retreating, with a low of $91,540, then slightly recovering and stabilizing around $92,670 at press time.

Market analysis suggests that this round of decline is mainly due to profit-taking in stages. After bottoming out and rebounding by the end of 2025, Bitcoin’s price has risen nearly 12% from the low near $84,500 in December. Short-term traders tend to lock in profits at high levels, exerting downward pressure on the price.

Liquidation data further amplifies volatility. CoinGlass shows that in the past 24 hours, approximately $441.5 million worth of Bitcoin-related positions were forcibly liquidated, with long positions accounting for as much as $288 million. Passive liquidation of long positions usually intensifies short-term selling pressure, causing the price to drop rapidly in a short period.

Meanwhile, institutional funds are also showing signs of cooling down. Shortly after BlackRock’s IBIT recorded its largest single-day inflow in three months, Bitcoin spot ETFs overall turned into net outflows. Data from SoSoValue indicates that 12 Bitcoin spot ETFs collectively saw outflows of about $243 million in a single day, putting some short-term pressure on market sentiment.

However, Bitcoin quickly recovered the $92,000 mark, indicating that the overall market structure remains robust. The cryptocurrency fear and greed index remains in the neutral zone at 49, suggesting that this correction is more like liquidity clearing rather than panic selling.

From a technical perspective, the Bitcoin daily chart is forming a “double bottom” pattern, which is a common bullish reversal signal. The current price has not yet effectively broken through the neckline at $94,480, so short-term volatility still exists. Technical indicators show that Aroon Up remains above 85%, and the MACD line has crossed above the zero axis and continues upward, indicating that potential bullish momentum is still accumulating.

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 cannot be ruled out, which was an important support area last December.