Bitcoin Below $88K as $60M Longs Liquidate, Shutdown Fears

Bitcoin fell below $88,000 on Jan. 25 as a wave of leveraged long liquidations accelerated the drop. Meanwhile, rising U.S. government shutdown expectations and renewed tariff threats added to the pressure.

Bitcoin Drops Below $88,000 as $60 Million in Leveraged Longs Liquidate

Bitcoin slid below $88,000 late Jan. 25, extending a sharp pullback that pushed the cryptocurrency down to about $87,948 on a TradingView BTC/USD chart, roughly 1.3% lower on the session.

Bitcoin USD Selloff Chart. Source: TradingView/X

The move coincided with a burst of forced selling in derivatives markets. The Kobeissi Letter said about $60 million in leveraged long positions were liquidated in roughly 30 minutes as prices broke under the $88,000 level.

Macro headlines also weighed on sentiment. The Kobeissi Letter linked the selloff to rising expectations of a U.S. government shutdown and fresh trade threats from President Donald Trump.

Trump said he could impose a 100% tariff on Canadian imports tied to Canada’s trade approach with China, escalating tensions with Ottawa as markets looked ahead to the next U.S. trading session.

Bitcoin Bear Flag Forms After Sharp Pullback

Bitcoin traded near $88,000 on Jan. 25 as a TradingView daily chart shared by X user CryptoGerla flagged a potential bear flag structure forming after the latest decline. The chart shows BTC/USD pulling back sharply from the six-figure zone, then consolidating inside a narrow, upward-sloping channel, a pattern often associated with corrective pauses during broader downtrends.

Bitcoin Bear Flag Setup. Source: CryptoGerla on X

The setup followed a clear breakdown from a prior support area in the low to mid-$100,000 range, marked on the chart by a broad green zone. Once price slipped below that band, rebounds stalled beneath it, suggesting former support has turned into resistance. Subsequent candles compressed into a rising channel, reflecting reduced volatility and slower upside momentum after the selloff.

CryptoGerla cautioned that patience remains key at current levels. The chart highlights downside risk if price breaks below the lower boundary of the flag, with a larger red support zone drawn lower on the chart, closer to the mid-$70,000 area. For now, Bitcoin continues to trade within the pattern, leaving direction dependent on whether price resolves above resistance or resumes the broader downward move.