Bitcoin's $2B Liquidation: Sacks' Speech Dims US Reserve Hopes

Bitcoin's price has been volatile in recent days, with the cryptocurrency dropping below $100,000 and triggering a liquidation event worth over $2 billion. The community had high hopes for David Sacks' digital asset press conference on Feb. 4, but the former Trump administration official delivered a diplomatic speech about a potential Bitcoin Strategic Reserve, which dampened expectations for a US national Bitcoin reserve in 2025.

Adding to the market's uncertainty, a Bitcoin analyst pointed out that over the past 24 hours, a total of 49,700 BTC from the 6-12 month spent output age band (SOAB) has been spent. This significant movement could lead to market volatility and potentially impact the BTC price, as a large portion of these Bitcoin is expected to be sold in the coming days, potentially creating selling pressure in the market.

Meanwhile, an investment analysis platform, Alphractal, suggested that overall Bitcoin sentiment is "entering the bearish zone." However, a negative sentiment could allow better buying opportunities in the future, as investors can act intelligently and counter the herd mentality prevalent in the crypto market.

Technically, Bitcoin has been trading lower over the past 48 hours, with a symmetrical triangle taking shape on the 1-hour chart. With bullish momentum unlikely to transpire this week, BTC could potentially chase liquidity zones formed around $100,000 before testing the lower order block between $94,100 and $92,600. In a low-volume trading environment, it is common for BTC to trade between liquidity levels where trader positions are estimated. However, with an overall bearish outlook, Bitcoin could fill the fair value gap at $99,500 over the next few hours before threading lower down the charts in the coming days.

On the other hand, whale addresses have added more than 30,000 BTC in the recent dip, which can typically trigger a short-term bounce. If prices close above $100,000, the current bearish market will be invalidated, potentially turning the tides in favor of the bulls.