Bitcoin's $87K Rally Proves to Be a Trap for Some Investors

Bitcoin's recent surge to $87,000 was short-lived and some analysts believe it was a trap.

The cryptocurrency experienced an impressive rally on Friday driven by positive macro developments in the US economy, but its run was quickly halted and it plummeted below $84,000 within hours, resulting in nearly $600 million worth of liquidations across the market.

Popular analyst Ali Martinez believes that whales sold more than 30,000 BTC as the move progressed, compromising the rally before it even got going.

Martinez is now watching the lower end of a channel at around $82,500 as the immediate downside target for BTC, which came inches above that level when it crashed to $83,500.

Additionally, data from Glassnode shows that investors who accumulated 1-2 years ago at prices 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.