Bitcoin Price Dump to $35,000 Possible As It Trades Below 2021 ATH

Key Insights:

• Bitcoin price could slide toward $35,000, especially if selling pressure overwhelms dip buying.
• Tight liquidity conditions, ongoing Federal Reserve balance-sheet drain, and upcoming U.S. CPI data are key risks.
• Analysts say a BTC price break below $68,900 could open a move into the low-$50,000 range.

Bitcoin price bounced from $62,000 last week. It is now struggling to hold above the $70,000 resistance. The selling pressure in BTC has been overwhelming despite strong liquidity.

Market experts believe that if the bears overpower the bulls, a drop to $35,000 could be coming next.

Bitcoin Price Can Crash to $35,000 As Per Historical Charts

Popular analyst Crypto Patel said the current Bitcoin price chart is closely tracking the 2017 cycle. He added that it also mirrors patterns from the 2021 market. During both these cycles, BTC faced a sharp correction.

In a market update, Patel said Bitcoin has historically experienced a parabolic rally before entering a deep pullback. He argued that if the pattern repeats, Bitcoin could fall toward the $35,000 level in the coming weeks.

While the BTC whales have been offloading their holdings, retail has been trying to buy the dips. The Federal Reserve is currently draining roughly $53 billion per month in liquidity. Moreover, the US CPI numbers for January will come this week.

Analysts say a hotter-than-expected inflation reading could lead to a risk-off sentiment. Early signs shows Gold’s safe-haven demand is accelerating. Gold has climbed to around $5,032 per ounce, while silver has lagged the move.

For the near term, the $52,000 area as a major whale liquidation cluster. A high-volume breakdown below $68,900 could open the path toward the low-$50,000 range. Conversely, a sustained move back above $70,300 would invalidate the near-term bearish setup.

On the other hand, veteran economist Peter Schiff said that the Bitcoin price top is already here. He believes that after the 50% correction from the all-time highs of $126,000, the recovery looks fragile. Schiff wrote:

Bitcoin Price Remains At Mercy of Tightening Liquidity

Bitcoin price is struggling to gain upward momentum as liquidity conditions remain tight. This is even though liquidity in 2025 was higher than that in 2024.

In 2024, data shows inflows reached about $10 billion. These inflows boosted Bitcoin’s market capitalization by $26 billion. In contrast, during 2025, approximately $308 billion flowed into the market. However, BTC’s total market cap tanked by $98 billion during this period.

Thus, the selling pressure is largely overwhelming any positive multiplier effect from new capital. As a result, inflows are getting absorbed instead of getting amplified.

Until broader liquidity conditions improve, Bitcoin is unlikely to see a sustained price rally, they added.

The U.S. Federal Reserve will inject $8.3 billion into money markets on Tuesday, Feb. 10. This move is part of a broader $53.5 to $55 billion liquidity support program.

The operation will involve purchases of U.S. Treasury bills aimed at easing funding pressures. A follow-up injection of approximately $6.9 billion is scheduled for Thursday, Feb. 12.

Bitcoin ETF Inflows Seem to Recover Well

Flows into spot Bitcoin ETFs seem to be returning back. In the last two trading sessions, the net flows have turned positive. On Monday, Feb. 9, the total inflows across all Bitcoin ETFs stood at $144 million.

Grayscale’s mini-Bitcoin ETF (BTC) saw the most inflows at $130 million. On the other hand, BlackRock’s IBIT saw $20.9 million of outflows.

Glassnode data suggests that Bitcoin market conditions are showing early signs of stabilization. However, overall market conviction remains subdued.

The on-chain analytics firm reports that off-chain indicators are recovering. Spot and ETF-related metrics have started to rebound from weak levels. However, derivatives markets continue to reflect a defensive stance.

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