Bitcoin Price Drops 4% as Musk Calls It Real Currency and Schiff Calls It Fake, Short Squeeze Could Trigger Wild Rebound

The Bitcoin price has slumped 4% in the last 24 hours to trade at $86,743 on a 40% daily trading volume drop to $52 billion.

This BTC price drop happens as Elon Musk reignites the debate about Bitcoin’s true value. In a new interview, Musk said Bitcoin is backed by energy, which he believes is the world’s real currency because it can’t be printed or faked. He argued that this energy foundation gives Bitcoin strength, even if price swings happen in the short term.

At the same time, gold supporter Peter Schiff renewed his attacks, calling Bitcoin a “fake asset” and claiming MicroStrategy’s model looks like a Ponzi structure because it relies on selling shares or BTC to fund dividends.

Fresh market data shows rising tension as Whale Insider reports that over $7.8 billion in short positions will be liquidated if Bitcoin reaches $100,000. CoinGlass also shows that liquidation pressure builds fast once BTC moves above $91,000.

Many leveraged shorts are stacked on major exchanges, waiting near key resistance levels. If Bitcoin starts rising again, those shorts may be forced to buy back, creating a fast breakout. Large buyers continue accumulating BTC, increasing the chances of a strong rebound once resistance breaks.

Bitcoin Price Eyes Recovery After Testing Major Support

Bitcoin is under strong selling pressure on the 3-day chart but is showing early signs of a bounce from a major support area. After failing to break above $126,000 (Resistance 1), BTC fell into a clear downward channel, forming lower highs and lower lows as sellers stayed in control.

The price dropped below the 50-day SMA (~$110,500), which now acts as resistance. BTC is currently testing a major support zone—a high-liquidity area where buyers usually step in. This zone lines up with a long-term upward trendline that has supported Bitcoin in 2025. The recent wick rejection here suggests buyers are defending this level and sellers are losing momentum.

BTCUSDT Analysis Source: Tradingview

Bitcoin Technicals Shows Fading Bears, Potential Bounce Targets $95K–$120K

The RSI is around 31, near oversold territory. Historically, when RSI falls below 35 near major support, a relief rally often follows. A rise above 40 would confirm growing bullish strength.

The MACD is still bearish, with the MACD line below the signal line and a negative histogram. However, the histogram’s decline is slowing, hinting that bearish momentum is fading. A bullish crossover may happen soon.

If the bounce continues, the first target is $95,000–$100,000, followed by the 50-day SMA. Breaking out of the bearish channel would signal a trend reversal and could push BTC back toward $110,000–$120,000.

On the downside, if support fails, BTC could drop to $70,000–$60,000, with the 200-day SMA at $88,400 as the final defense before deeper losses.