Bitcoin faced a sharp sell-off, dropping to $82,000 before recovering slightly. Several altcoins followed Bitcoin’s decline, seeing sharp corrections before making partial recoveries.
The cryptocurrency is now priced at $84,478, a 2.74% decrease over the past 24 hours. Its market cap has fallen to $1.67 trillion, while 24-hour trading volume surged 26.68%, showing strong market activity despite price fluctuations.
Bitcoin’s price volatility has been significant, with an intraday high of $86,910, followed by multiple swings downward. On Wednesday, the cryptocurrency briefly dipped to $82,133, falling below the 200-day Exponential Moving Average (EMA) for the first time since September 2024. The ongoing uncertainty has kept traders cautious as macroeconomic and market conditions influence price movements.
Factors behind Bitcoin’s price drop
Several factors have contributed to this downturn. Regulatory concerns and policy uncertainty have dampened sentiment, particularly due to the slow rollout of pro-crypto policies under President Donald Trump.
Cryptocurrencies linked to political narratives, especially memecoins, have suffered substantial losses. Additionally, a $1.5 billion security breach on the Bybit exchange has raised fears about cybersecurity risks, further weakening investor confidence.
Macroeconomic instability has also played a role. Recent tariff threats from President Trump have created market uncertainty, leading to increased volatility.
On February 25, Bitcoin dropped to $87,000, its lowest in three months, as economic concerns mounted.
Will Bitcoin recover or decline further?
Crypto analyst Michaël van de Poppe suggests Bitcoin is now in a key support zone, labeling it as a “sweet spot for entries”. If Bitcoin reclaims the $88K-$89K range, it could see strong buyer interest, forming a deep weekly wick and gaining momentum into March. However, failure to recover this level may lead to further downside risks.
The $85,000 level is a critical support zone for Bitcoin. Holding above this level could push the price toward $90,000-$92,000, potentially reclaiming its all-time high of $108,000 in the coming months. However, if support fails, Bitcoin could drop to $70,000 or lower before stabilizing.
Technicals show Bitcoin oversold but bearish momentum persists
Technical indicators remain mixed. The Relative Strength Index (RSI) at 25.83 suggests Bitcoin is oversold, indicating possible buying interest. However, the Moving Average Convergence Divergence (MACD) remains bearish, with the MACD line below the signal line and red histogram bars confirming continued selling momentum.
Bitcoin’s next move depends on regaining support above $85,000-$86,000. If it fails, the price could drop further to $80,000. Market participants closely monitor trading volume and macroeconomic developments to gauge Bitcoin’s next direction.
