Bitcoin price is in a downward spiral, dropping below $90.000 and as low at $87,000 today. With this steep fall, the Bitcoin price is further removed from its high in January of more than $109,000.
Investors are uncertain of what is ahead as the sharp drop comes in both an internal and external environment. The market is struggling to find support. However, it remains unclear what the future holds.
Mac.D is a CryptoQuant QuickTake contributor who has been able to achieve this. analyze the current market scenario Give a clear and detailed view.
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Bitcoin: Is a rally still possible?
Dive into the world of outlookMac began by addressing the main factors that are driving the current plunge of Bitcoin’s value. Mac believes that both internal and external factors have played a role in Bitcoin’s recent price drop.
The aftermath of an Ethereum-related incident that has caused a ripple effect in the crypto market. The ongoing concerns about inflation and Trump’s tariff policy have impacted the market externally. weighed on risk assetsBitcoin, for example.
According to Mac, these factors collectively have led to Bitcoin breaking below the important $90,000. The analyst also points out two other key elements which could affect Bitcoin’s future trajectory.
The recent liquidation has been at its highest since November with long positions worth $245,000,000 being wiped out. These large-scale liquidations can reduce the market’s depth and create conditions for a price rebound.
BTC Long-Term Liquidation: Rise or fall?
“Liquidation of long positions has occurred. Today’s liquidation marks the highest since November, with $245 million worth of long positions being liquidated.” – By @MAC_D46035
Posting Full Article⤵️https://t.co/c4aefYbQ73 pic.twitter.com/xCwDbAyLJM
— CryptoQuant.com (@cryptoquant_com) February 25, 2025
The average price of entry for those whales who have held Bitcoin less than 6 months is $89,600. This level of psychological support may be helpful. stabilize the market These whales will stop further sales if they do not continue to sell.
The outlook remains uncertain despite these possible supports. Mac warns further drops could happen if support fails to hold. Mac recommends adopting proactive risk-management strategies in this situation, which include short positions on futures and partial liquidation.
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BTC: Technical Overview
Mac has highlighted that Bitcoin is now trading below the $89600 level Mac had previously identified. Mac says that the breach may lead to further falls, however, RektCapital has a different view. optimistic technical view.
RektCapital believes that Bitcoin’s recent decline could be just a temporary setback. Analysts often point out a possible downside deviation before a price increase, which could indicate that the rebound is already taking place.
The downward drift below the Range Low is currently in progress.$BTC #Crypto #Bitcoin https://t.co/r5reRJ0HFy pic.twitter.com/yr1ABiDmBg
— Rekt Capital (@rektcapital) February 25, 2025
Featured image was created with DALL – E, chart from TradingView
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Source: www.newsbtc.com
