Bitcoin Price Crashing Again?

BitcoinBTCThe market’s sentiment improved slightly on February 25 and the price of the stock reached a new low at $85,953. 

The price of BTC could fall further in the coming days if the rejection at $89,000 is not met.

Bitcoin’s demand is still subdued

Bitcoin’s “apparent demand” According to data CryptoQuant Market Intelligence Firm 

Know:

• A difference in production or inventory is known as apparent demand. 

• Bitcoin’s production refers only to the issuance of mining coins, while its inventory represents inactive supplies that have been present for a period exceeding a full year.

• It is a sign that the apparent demand has weakened if production exceeds stock reduction.

• Bitcoin’s apparent Bitcoin demand fell from 279,000 BTC in December to 10,000 BTC in February.

• For the first time in September 2024, the indicator turned negative on Feb. 25.

• The decline in retail or short-term demand is reflected by this trend. It also aligns with a broader decrease of macroliquidity. 

• Price could drop if the current trend persists, like it did between June and August when BTC lost another 22% on its way to $53,000.

• Historically, these periods can be a good time to buy.

• This is the level of BTC prices in late January 2024 (mid-January) and mid-October 2025 (late October), before they rose by 76% each time, reaching new record highs.

Related: Crypto market is seeing a ‘tactical retreat, not a reversal’ — Binance CEO

Watch out for Bitcoin prices below $90,000.

Bitcoin reached $90,000. This was the first time it had done so since November 18, 2024.

BTC could revisit key areas that are below this current level if bearishness continues.

Notably:

• Bitcoin’s main area of concern is between the previous low range at $85,000 (formed Nov. 12), and $87,000 as a support level.

• BTC may target the cluster of liquidity within this range, if $87,000 support is lost.

• The bulls will be given a reprieve if this price range is reversed sharply, as it would signal heightened interest in buying below $90,00,000.

• BTC would then be able to test its fair value between $80.500 and $85,000 that was created during the initial. “Trump Pump” rally.

• It is important to note that the simple 100-day moving averge sits in this area, indicating a demand region just above $80,000.

• This chart also illustrates that there are two types of daily CME gap According to analysts, BTC’s worst case scenario is between $77,000-$80,000.

At $80,000, the level is considered to be attained. “represents a strong support zone” Axel Adler Jr. is a CryptoQuant author who has written a book about Bitcoin. said In a post from X on 26 February.

The analyst believes that the current price is 15% below the cost-basis of the short term holder (STH), currently at $91,600. This has been historically a good area for reversals once the market touches this value.

The article is not intended to provide investment advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making any kind of investment.