Bitcoin faces heavy selling pressure at $65,000 despite whale accumulations crossing above 3 million BTC. Although BTC has been trading under this psychological resistance level for the past week, the technical aspect shows BTC compressing inside a bull flag.
Bitcoin faces rejection at $65,000
Bitcoin has been trying to climb over the physiological resistance level at $65,000 for the past week but has been facing rejection. Every single time the coin approached this level, there was a huge market sell-off that hindered its upward momentum. BTC has been staggering despite whale accumulation, which took the total whales’ holdings to 3 million BTC.
Broader market conditions dampen supply shrink
Usually when the large accumulate such a large quantity, the supply shrinks and the prices rise. However, broader market sentiment can override this supply effect in the short term. If investors are worried about macroeconomic conditions, rising interest rates, geopolitical tensions, regulatory uncertainty, or weakness across global financial markets, many traders choose to reduce risk instead of buying more Bitcoin. This creates selling pressure from retail investors, institutions, and short-term traders that can outweigh the buying activity of whales.
Bitcoin may hit $70,000 after bull flag breakout
Despite being rejected at the $65,000 resistance level, Bitcoin is forming a bull flag pattern, as shown in the chart below. A bull flag typically develops after a strong impulsive rally, known as the flagpole, where buyers aggressively push the price higher in a short period. Following this sharp move, the market enters a consolidation phase as traders take profits and new buyers wait for confirmation before entering.
During this consolidation, the price begins to compress within two parallel downward-sloping or sideways trendlines, creating the flag portion of the pattern. Trading volume usually declines during this phase, indicating that selling pressure is weakening rather than signaling a reversal. The tighter the price action becomes, the greater the likelihood of a significant move once the consolidation ends.
A bullish breakout occurs when Bitcoin closes above the upper trendline of the flag with increasing trading volume, confirming that buyers have regained control. This breakout often triggers fresh buying from traders waiting for confirmation and forces short sellers to cover their positions, accelerating the upward move.
The price target is commonly estimated by measuring the height of the initial flagpole and projecting that distance from the breakout point, and this is estimated to be around the $70,000 level.
