Bitcoin Price Crashes Below $86K Before Rebounding—Is a $70K Drop Still Coming?
The post Bitcoin Price Crashes Below $86K Before Rebounding—Is a $70K Drop Still Coming? appeared on BitcoinEthereumNews.com.
Bitcoin price rebounded to $89,042 after briefly plunging below $86,000 on Feb. 25. The drop, which marked a 20% decline from its all-time high, triggered $2 billion in liquidations, pushing market sentiment into “extreme fear.” Mass Liquidations Wipe Out $2 Billion, Traders Panic Amid Bitcoin Price Fall The crash hit hard, with CoinGlass logging $2 billion in liquidations over 48 hours. Longs took the worst of it as Bitcoin hit its lowest since Nov. 13, 2024. Crypto liquidations. Source: CoinGlass According to the Crypto Fear & Greed Index, crypto traders have shifted into “extreme fear” territory, a sentiment shift that often precedes deeper price corrections. BTC/USD 1-week chart. Source: Rekt Capital/X Popular analyst Rekt Capital noted that Bitcoin has broken below its “reaccumulation range”, a key structure that previously supported price action. If the pattern holds, Bitcoin could face further selling pressure before finding a bottom. Bitcoin liquidation data. Source: TheKingfisher/X Meanwhile, TheKingfisher doubled down, eyeing $73,800 as a potential bottom, with liquidation clusters between $68,000 and $77,000 flashing red. “Imbalance favors more liquidations above price. Risk: Large long liquidation cluster below may act as support, but losing it could trigger a cascade,” he said. Institutional Investors Are Backing Off—Is the Bull Run Over? While Bitcoin ETFs initially fueled a price surge, new data suggests institutional investors may be pulling back. Trading firm QCP Capital noted that BTC’s reaction to U.S. inflation data has weakened, with gold and equities outperforming. Crypto fund flows compiled by CoinShares Bitcoin’s ETF-fueled rally is losing steam. QCP Capital noted BTC barely blinked at U.S. inflation data, lagging gold and stocks. CoinShares data shows U.S. Spot Bitcoin ETFs bleeding cash—five straight days of outflows, with $595 million yanked out in February. MicroStrategy’s $2 billion BTC grab couldn’t stop the slide, leaving traders wondering if corporate…
Filed under: News - @ February 26, 2025 11:18 am