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Driven by the positive macro developments on the US economic scene during the business week, bitcoin experienced an impressive rally on Friday to over $87,000 for the first time in about ten days.<\/p>\n
However, its run was stopped just as fast, and the asset plummeted by several grand within hours. It slumped below $84,000 on Friday evening, leaving nearly $600 million worth of liquidations across the entire market. Popular analyst Ali Martinez believes this rally was doomed from the start.<\/p>\n
Martinez said bitcoin’s move to $87,200 was “compromised before it even got going” as whales sold more than 30,000 BTC as the move progressed. In addition, the $87,000 zone coincides with the upper boundary of a channel that has rejected the cryptocurrency repeatedly for more than two weeks.<\/p>\n
After the latest such development, the analyst said he is watching the lower end of the same channel at around $82,500 as the immediate downside target. BTC came inches above that level yesterday when it crashed to $83,500. For now, though, it remains about $2,000 higher.<\/p>\n
Further data from Glassnode, though, explained that whales are not the only market participants disposing of their holdings now. The analytics resource noted that investors who accumulated 1-2 years ago at prices of around $97,000 and those who bought in the past 6-12 months at $89,000 have been selling large quantities of their BTC stash.<\/p>\n
\n$BTC<\/a> investors that bought the top are currently selling.<\/p>\n
Two cohorts sit underwater: buyers from 1\u20132 years ago at $97k, and from 6\u201312 months ago at $89k.<\/p>\n
Those who bought the 2025 rally are selling the most coins per day this year. Those who bought the decline are not. pic.twitter.com\/cHAQoaqreT<\/a><\/p>\n
\u2014 glassnode (@glassnode) October 3, 2026<\/a><\/p>\n<\/blockquote>\n
Consequently, Martinez concluded<\/a> that if these sell-offs continue, it could provide the confirmation he is looking for to buy the dip at around $82,500 and aim for another rebound toward $87,000.<\/p>\n
Late Longs Already Washed Out<\/h2>\n
Before the US jobs report went live on Friday, Daan Crypto Trades warned about another vulnerability, noting that the BTC open interest had climbed to more than $1.3 billion in just a couple of days. Much of it came from longs added as the asset ascended.<\/p>\n
He identified the $85,500-$86,000 region as particularly important because many of those positions appeared there. His warning was pretty straightforward: if the cryptocurrency fell below that zone, these longs could be squeezed out. Given bitcoin’s major correction<\/a> on Friday and almost $600 million worth of liquidations, most of it from longs, it’s safe to conclude that this is exactly what happened.<\/p>\n
As such, Daan said<\/a> earlier today that most of these positions have now been flushed from the market.<\/p>\n
The post Bitcoin\u2019s $87K Rally Was a Trap: Could $82.5K Be the Real Buying Opportunity?<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n