Bitcoin price faced a strong bearish pressure due to increasing bearish domination below $85K. As a result, BTC price dropped toward a new low at around $78K. However, buyers purchased heavily around this dip, resulting in an immediate rebound toward $85K. Over the past 24 hours, Bitcoin’s trading volume has increased by more than 26.9%, totalling $86.2 billion.
In a broader perspective, Bitcoin fell below $100,000 on January 7 and showed a downward trend. It reached a low of approximately $89,397 on January 13. On Feb 3, Bitcoin again crashed and reached a low near $91K. In recent days, the price has been on a severe downtrend toward $80K. Over the last 24 hours, its total market capitalization dropped by 0.99%, settling at $1.66 trillion.
Bitcoin Faced Nearly $500 Million in Liquidation
Bitcoin experienced a sharp sell-off on February 27, plunging to below $78,000 for the first time in over three months. On-chain data analysis indicates that this decline was predominantly due to losses by “Bitcoin tourists”—new traders who recently entered the market.
According to Glassnode, 74% of the realized losses during this period were incurred by those who had bought Bitcoin within the last month. Moreover, the scale of unrealized losses from this downturn surpassed those during the crypto exchange FTX’s capitulation event, suggesting a potential bottom formation for Bitcoin’s price.
Subsequently, Bitcoin’s value has rebounded toward $85,000, buoyed by encouraging Personal Consumption Expenditures (PCE) data. The reduction in selling pressure coincided with the latest U.S. macroeconomic figures meeting inflation expectations. The January PCE index, which is the Federal Reserve’s favored inflation measure, reported a decline to 2.6%.
Recent data from Coinglass reveals that Bitcoin saw nearly $490 million in total liquidations over the last 24 hours, with buyers liquidating $390.48 million and sellers around $99.9 million, indicating a significant increase in long liquidations. Additionally, the open interest for Bitcoin has dropped by 3.5%, touching over $50.5 billion in the last 24 hours.
However, Bitcoin’s funding rate trades at +0.004%, indicating that buyers remain somewhat bullish. This could help buyers to continue pushing the BTC price upwards.
Bitcoin Price Prediction: Technical Analysis
Bitcoin’s price is experiencing strong bearish pressure as it continues to drop below immediate Fib levels. However, after reaching a low at around $78K, BTC price witnessed a strong buying pressure and surged toward $85K. Currently, Bitcoin trades at $84,286, reflecting a 0.29% drop in the past 24 hours.
The BTC/USDT trading pair will now aim for a retest of the $85K level. As buying pressure rises, buyers will continue to defend further decline. If BTC price surges above $85K, we might see a recovery toward $89,000.
On the other hand, if Bitcoin fails to meet buyers’ demand around $85K, we might see a decline again toward the low of $77K.
Bitcoin Price Prediction: What to Expect Next?
Short-term: According to BlockchainReporter, BTC price might aim for $85K. If it surges above that level, we might see $89,000. On the other hand, $77K is the lower range.
Long-term: According to Coincodex’s current Bitcoin price prediction, the price of Bitcoin is expected to increase by 50.79%, reaching $121,223 by March 30, 2025. Coincodex’s technical indicators highlight a bearish sentiment with the Fear & Greed Index at 16, indicating extreme fear. In the last 30 days, Bitcoin has seen 13 green days, accounting for 43% of the period, with a price volatility of 4.13%. Based on this forecast, it is currently considered a bad time to buy Bitcoin.
How much is Bitcoin price today?
Bitcoin price is trading at $84,286, at the time of writing. The BTC price has dropped by over 0.29% in the last 24 hours.
What is the BTC price prediction for February 28?
Throughout the day, BTC price might aim for $85K. If it surges above that level, we might see $89,000. On the other hand, $77K is the lower range.
Is Bitcoin a Good Buy Now?
According to long-term forecasts, Bitcoin price might reach $121,223 by March 30. This makes BTC price a good investment considering its monthly yield.
Investment Risks for Bitcoin
Investing in Bitcoin can be risky due to market volatility. Investors should:
- Conduct technical and on-chain analysis.
- Assess their financial situation and risk tolerance.
- Consult with financial advisors if necessary.
