China’s Bitcoin Sell-Off Could Push BTC to $40K! Crypto Chaos Ahead?

This time, Bitcoin is back in the headlines, not because of a rally, but due to growing fears of a significant sell-off. Market analyst Leviathan has sounded the alarm over what he claims is a secret BTC sell-off strategy by China to dump its Bitcoin holdings, potentially dragging the BTC Price down to $40,000. With Bitcoin currently holding above the key $80,000 support level, this warning has caught the attention of traders and investors across global markets. If true, the ripple effect could shake the charts and the foundation of current Bitcoin market trends.

Quiet Sales Behind Closed Doors

Although China has maintained a firm public stance against crypto trading, Leviathan believes the real story may unfold in the shadows. According to him, local governments have quietly implemented a BTC sell-off strategy using private tech firms and offshore platforms. These operations, often in legal gray zones, are reportedly helping cities raise funds by liquidating seized crypto. With China’s estimated 194,000 BTC under control, even a partial liquidation could hit the BTC Price hard and shift Bitcoin market trends.

Hong Kong’s Role in the Bigger Picture

Interestingly, Hong Kong’s crypto-friendly regulations could indirectly affect this BTC sell-off strategy. As local Chinese authorities look for ways to move Bitcoin quietly, Hong Kong is emerging as a practical gateway. This contradiction, publicly denouncing crypto while profiting from it stands out, especially as the U.S. considers creating strategic crypto reserves. The direction China takes next may affect the BTC Price and reshape Bitcoin market trends in the months ahead. Let’s take a closer look at how these developments influence Bitcoin’s technical picture.

BTC Price Action Analysis of April 18th, 2025

A 5-minute chart of the BTC Price shows erratic intraday movement within a well-defined ascending channel, with the price repeatedly bouncing from both trendlines. Until it ran into significant resistance close to $85,500, the lower trendline continuously served as dynamic support, pushing the bitcoin price upward. There were brief corrections due to the price failing to break through this ceiling despite numerous tests. Interestingly, the RSI indicator confirmed high-frequency momentum shifts by oscillating between overbought and oversold areas. Any overbought condition caused pullbacks, particularly those close to resistance, whereas recoveries were caused by oversold zones close to the channel base.

Chart 1, Analyzed by Alokkp0608, published on April 18th, 2025

Strong buying demand is evident at the support level at $84,000, as evidenced by the swift reversal of a steep fall that briefly broke the channel at 14:00 UTC. The MACD also displayed a mix of golden and death crosses, showing the struggles between bulls and bears. Following the RSI’s continuous plunge into the oversold zone, golden crosses indicated small upward surges and offered positive confirmation. Nevertheless, the subsequent death crosses resulted in consolidation or slight declines, especially when the RSI was flat. The chart’s final leg displays a possible golden cross forming again, and the RSI is rising over the midline, indicating fresh short-term bullish momentum.. 

BTC at a Crossroads: What is Next For Bitcoin?

Bitcoin is in a tricky spot, caught between strong chart support and growing fear sparked by real-world events. The buzz around China possibly selling off its BTC stash has traders on edge, even though the price still holds above $84,000. On the technical side, signals like RSI and MACD suggest some fight still left in the bulls, but that doesn’t mean smooth sailing ahead. With Hong Kong quietly stepping into the spotlight and the U.S. leaning more toward crypto-friendly policies, Bitcoin’s next move could come from the charts or the headlines. Traders should closely watch these levels for potential price swings as Bitcoin reacts to macroeconomic factors and broader market trends.