Bitcoin’s price has faced a dramatic downturn, falling below $90,000 and reaching as low as $87,000 levels today. This steep decline places the cryptocurrency further away from its January all-time high of over $109,000.
The sharp sell-off comes amid both internal and external challenges, leaving investors uncertain about what lies ahead. While the market struggles to find support, the path forward so far remains unclear
However, Mac.D, a contributor to the CryptoQuant QuickTake platform has managed to analyze the current market scenario and give a detailed outlook.
Is A Rally Still Possible For Bitcoin?
Diving into the outlook, Mac first touched on the major factors behind the ongoing plunge in Bitcoin’s price. According to Mac, a combination of internal and external pressures have contributed to Bitcoin’s recent plunge.
Internally, the aftermath of a notable Ethereum-related hacking incident has unsettled the broader crypto market. Externally, the ongoing inflation concerns and the reintroduction of tariff policies under the Trump administration have weighed on risk assets, including Bitcoin.
These factors have collectively led to a break below the crucial $90,000 support level, according to Mac, the analyst further points to two key elements that could influence Bitcoin’s trajectory moving forward.
First, the recent liquidation of long positions has reached its highest level since November, with $245 million worth of long positions wiped out. Such large-scale liquidations often reduce market depth, creating conditions that might enable a price rebound.
BTC Massive Long Liquidation, At a Crossroads of 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
Full post ⤵️https://t.co/c4aefYbQ73 pic.twitter.com/xCwDbAyLJM
— CryptoQuant.com (@cryptoquant_com) February 25, 2025
Second, the average entry price for whale investors holding Bitcoin for less than six months is around $89,600. This psychological support level may help stabilize the market if these whales refrain from further selling.
Despite these potential supports, the outlook is far from certain. Mac cautions that if the support level fails to hold, further declines could occur. In this scenario, he recommends proactive risk management strategies, including short positions in futures or partial liquidation of holdings.
Technical Outlook On BTC
With Bitcoin currently trading at $87,132, it is quite obvious that the asset has breached the $89,600 support highlighted by Mac. While Mac suggests this breach could lead to further declines, another analyst, RektCapital, offers a more optimistic technical view.
According to RektCapital, Bitcoin’s recent drop might be a temporary setback. The analyst highlights a potential downside deviation that often precedes a significant price recovery, indicating that a rebound could already be taking shape.
The downside deviation below the Range Low of the ReAccumulation Range is now in progress$BTC #Crypto #Bitcoin https://t.co/r5reRJ0HFy pic.twitter.com/yr1ABiDmBg
— Rekt Capital (@rektcapital) February 25, 2025
Featured image created with DALL-E, Chart from TradingView
Samuel Edyme
Meet Samuel Edyme, Nickname – HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.
Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.
Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.
When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)
Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.
In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.
Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think’s probably unfeasible, I’ve done already a hundredfold.”
PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.
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