Bitcoin Nears $83K Support—Mass Liquidations or Whale-Driven Bounce?

• Bitcoin faces resistance at $89K while liquidation risks loom at $83K, increasing market volatility.
  
• Whale wallets reversed their distribution trend, rebounding from 5.30M BTC, signaling renewed accumulation.
  
• The Blockchain Group acquired 580 BTC for €47.3M, reflecting rising institutional interest despite market uncertainty.
  

Bitcoin’s price continued its downward trajectory on March 28, marking a fourth consecutive day of losses. The leading cryptocurrency plunged to an intra-day low of $83K, closely mirroring Wall Street’s sharp decline. The DOW closed 700 points lower, while the S&P 500 index dropped by 112 points.

The broader market sell-off is a fear of inflation resulting after the core Personal Consumption Expenditures index for February was projected under 2.8% and surpassed. Investors reacted negatively, leading to a sharp sell-off in equities. Meanwhile, Bitcoin traders remained cautious as macroeconomic factors exerted pressure on the digital asset’s price.

The sell-off was aggravated further when President Trump decided to impose 25% reciprocal tariffs on “all cars that are not made in the United States.” The market is also concerned that other forthcoming tariffs that are expected to be released on the 2nd of April including pharmaceutical tariffs will further worsen the economy. Such uncertainty suppresses the potential for a near-term Bitcoin relief rally.

Whales Accumulate Despite Bitcoin Price Drop

Despite the price decline, on-chain data from CryptoQuant shows resumed accumulation from Bitcoin whales. Wallets holding over 1,000 BTC have reversed their previous distribution trend. Over the past five months, the whale supply decreased from 5.59 million BTC to 5.30 million BTC, indicating profit-taking during the 2024 rally.

Source: X / Peter Brandt

The 30-day whale position change metric flipped positive in March 2025, signaling resumed accumulation. After dipping to 5.30 million, whale supply has started to increase again. The trend suggests growing confidence among large investors despite short-term price fluctuations.

Whales withdrawing Bitcoin from exchanges also contributes to the signs of reduced selling pressure. If the trend continues, it could have a stabilizing effect on BTC’s price over the next few weeks. The market is awaiting confirmation of ongoing whale accumulation before a definite change in sentiment can be confirmed.

Liquidation Risks at $83K and $89K

Alphractal’s liquidation heatmap also highlights key BTC price levels at $83,000 and $89,000, where significant leveraged positions are concentrated. These levels are the key areas that could lead to mass liquidations in the event of sharp price action, which can further contribute to volatility.

Source: Alphractal

Bitcoin could rally if the price approaches $89k since that would trigger an influx of over-hedged short position liquidations which would make the price rally even higher. Meanwhile, a price drop beneath $83k could make a lot of long positions get liquidated thus making the price drop lower. The price seems to be stagnating, possibly suggesting that volatility may be introduced soon.

Institutional demand continues to increase, as The Blockchain Group purchased 580 BTC at €47.3 million. Monetary policy could dictate Bitcoin’s trajectory, according to analysts, while some traders noted that whales are becoming more active. Bitcoin’s outlook remains uncertain despite bearish technicals as liquidity conditions evolve.

Read More: Bitcoin Holds Strong as Whales Accumulate Ahead of Major Breakout to $109k