Bitcoin has officially slipped into dangerous territory after losing the $90,000 level for the first time since early spring, triggering widespread fear across the market. The drop has intensified concerns that BTC may be transitioning into a full bear market, as momentum weakens and buyers struggle to absorb the aggressive waves of sell pressure.
According to top analyst Darkfost, one of the driving forces behind the latest downturn is persistent selling from major institutional players. Data shows that Galaxy Digital has been offloading significant amounts of BTC. This steady stream of institutional selling has added weight to an already fragile market structure, likely accelerating last night’s drop.
A particularly notable portion of this activity is the 1,474 BTC transferred to Coinbase Prime, equivalent to roughly $135 million at recent prices. Such large inflows to an institutional exchange are typically interpreted as preparation to sell, and this wave of supply appears to have coincided with Bitcoin’s accelerated move below the $90,000 level.
This type of selling activity from a major player like Galaxy Digital carries significant market implications. When large, sophisticated entities reduce exposure during a period of heightened volatility, it often intensifies fear among retail traders and shorter-term participants. The timing of these transfers — occurring as Bitcoin was already slipping through critical support zones — likely amplified the downside impact, contributing to the sharp overnight drop.
However, while the immediate effect is clearly negative, analysts like Darkfost emphasize that such phases of heavy selling and forced repositioning are also characteristic of late-stage corrections. Once large sellers finish distributing, markets often stabilize and rebuild from stronger hands.
Bitcoin’s price action on the 3-day chart shows a decisive breakdown, with BTC now trading around $90,400, sitting directly on top of the 200 moving average (red line) — a level that has historically acted as a final line of defense during major corrections.
The rejection from the $110K–$115K zone triggered a cascade of lower highs, shifting market structure firmly into a short-term downtrend. Momentum has deteriorated quickly, and the clean break below both the 20-day (blue) and 50-day (green) moving averages confirms bearish control.
Volume has spiked noticeably during the most recent candles, indicating forced selling and liquidation-driven moves rather than organic distribution. This aligns with the broader fear-driven environment and recent data showing large entities, including Galaxy Digital, offloading significant amounts of BTC. The high-volume flush suggests capitulation behavior, especially as Bitcoin revisits levels not tested since early 2025.
If buyers defend this level and the price stabilizes, it could mark the beginning of a base formation. However, a clean breakdown below the 200 MA would expose the next major support near $82K–$85K, signaling deeper downside risk.
Featured image from ChatGPT, chart from TradingView.com
