A Bitunix analyst has cautioned that the UK government’s upcoming liquidation of Bitcoin holdings could trigger significant market turmoil, potentially prompting a sector-wide sell-off.
The planned asset disposal risks amplifying selling pressure at a sensitive juncture for Bitcoin pricing. Technical analysis identifies $116,300 as critical support; a breach of this threshold may accelerate declines across cryptocurrency valuations.
Further complicating recovery prospects, Bitcoin faces stiff resistance approaching $120,000, challenging bullish momentum. Government-triggered liquidations could exacerbate existing volatility in the evolving digital currency ecosystem, testing market resilience.