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.
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.
Whales Sold
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.
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.
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.
$BTC investors that bought the top are currently selling.
Two cohorts sit underwater: buyers from 1–2 years ago at $97k, and from 6–12 months ago at $89k.
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
— glassnode (@glassnode) October 3, 2026
Consequently, Martinez concluded 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.
Late Longs Already Washed Out
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.
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 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.
As such, Daan said earlier today that most of these positions have now been flushed from the market.
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