Bitcoin has officially entered dangerous territory after losing the $90,000 level for the first time since early spring, sparking widespread fear in the market. The decline has heightened concerns that BTC may be transitioning into a full-blown bear market as momentum weakens and buyers struggle to absorb the aggressive waves of selling pressure.
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According to top analyst Darkfost, one of the driving forces behind the latest recession is the continued selling of large institutional players. Records show that Galaxy Digital has sold significant amounts of BTC. This steady stream of institutional selling has further strengthened the already fragile market structure, likely accelerating last night’s decline.
While the sentiment is undeniably scary, the combination of forced liquidations, institutional selling and panic-induced exits could create the final stages of a broader reset – one that historically precedes major cycle reversals.
Galaxy Digital sales are accelerating the market decline
Donkerfost reports that Galaxy Digital has been exceptionally active in recent hours, putting significant pressure on the already fragile Bitcoin market. According to the data, the company has moved more than 2,800 BTC, a significant amount considering the current environment of fear and declining liquidity.
A particularly notable part of this activity is the 1,474 BTC transferred to Coinbase Prime, which equates to approximately $135 million at recent prices. Such large inflows into an institutional exchange are typically interpreted as a preparation to sell, and this supply surge appears to coincide with Bitcoin’s accelerated move below the $90,000 level.
This type of sales activity from a major player like Galaxy Digital has significant implications for the market. When large, sophisticated entities reduce their exposure during a period of heightened volatility, it often increases fear among retail traders and participants in the shorter term. The timing of these transfers – which occurred when Bitcoin was already slipping through critical support zones – likely amplified the downside impact, contributing to the sharp overnight decline.
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 major sellers finish distributing, markets often stabilize and are rebuilt from stronger hands.
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BTC Price Analysis: Testing Key MA as Fear Spikes
Bitcoin’s price action on the 3-day chart is showing a decisive breakdown, with BTC now trading around $90,400, right on top of the 200 moving average (red line) – a level that has historically acted as a last line of defense during major corrections.
The rejection from the $110,000 – $115,000 zone caused a cascade of lower highs, shifting the market structure firmly into a short-term downtrend. Momentum has deteriorated rapidly and the clear break below both the 20-day (blue) and 50-day (green) moving averages confirms bearish control.
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Volume has increased noticeably in the most recent candles, indicating forced selling and liquidation-based moves rather than organic distribution. This is consistent with the broader fear-driven environment and recent data showing major entities, including Galaxy Digital, shedding significant amounts of BTC. The big flush signals capitulation behavior, especially as Bitcoin revisits levels untested since early 2025.
If buyers defend this level and the price stabilizes, it could mark the start of a base formation. However, a clean breakdown below the 200 MA would expose the next major support near $82,000 – $85,000, indicating deeper downside risk.
Featured image of ChatGPT, chart from TradingView.com