Bitcoin below $84K: 4 pressure points behind BTC’s sudden reversal

Bitcoin [BTC] has been in a strong uptrend over the past month or so, but that seems to be taking a break. The bears who formed a sell wall between $87,000 and $91,000 appear to have won the contest in this zone.

That said, leveraged short orders, ETF outflows, long liquidations, and US government potential selling preceded this sharp drop.

What caused Bitcoin to drop below $84K in just minutes?

To start with, four newly created wallets deposited 1 million USDC into Hyperliquid [HYPE]. Then, they opened 40x leveraged short orders on 148.49 BTC worth $12.5 million.

The four positions were valued at either $2.50 million or $2.60 million. The dump in the price of Bitcoin that followed suggested potential insider trading.

Moreover, the US government transferred out another 834 BTC valued at $71.56 million and 40,285 BNB worth $31.63 million. The amount in BTC was deposited into Coinbase Prime, hinting at potential selling, but it has yet to be confirmed on-chain.

Additionally, Spot Bitcoin ETFs posted negative net inflows just before the drop, with the biggest outflow being 994 BTC from ARK 21Shares (ARKB). In total, about 1,059 BTC valued at $91.72 million left BTC ETFs.

However, the weekly netflow remained positive at around $93 million.