Journalist
Posted:
- Bitcoin plunges to $86K, marking its steepest quarterly drop since August 2024.
- Whales accumulate 26,430 BTC, while short-term holders sell 27,500 BTC at a loss.
Bitcoin [BTC]’s recent plunge to a three-month low of nearly $86,000 on the 25th of February has sent shockwaves through the market, marking its steepest quarterly drop of approximately 20% since August 2024.
This downturn comes after weeks of defending key price levels, ultimately breaking Bitcoin’s long-term market structure and signaling the potential for extended bearish momentum.
Technical indicators such as the Relative Strength Index (RSI) suggest that Bitcoin has entered oversold territory, reinforcing concerns that a swift recovery may not be imminent.
Source: Trading View
With BTC down nearly 10% for the week, market sentiment remains cautious as investors assess the broader implications of this sharp decline.
BTC whales ‘buy the dip’
However, despite the downturn, Bitcoin whales have been accumulating aggressively, hinting at underlying confidence in the asset’s long-term trajectory.
Data from CryptoQuant shows that on the 24th of February, whale accumulation addresses received 26,430 BTC—wallets typically linked to over-the-counter (OTC) deals and long-term holdings.
Source: CryptoQuant/X
However, short-term holders (STH) have felt the pressure, with addresses holding BTC for less than 155 days moving 27,500 BTC at a loss within the past 24 hours.
This contrast between whale accumulation and short-term capitulation highlights a critical phase in Bitcoin’s market cycle, where institutional players continue to accumulate despite heightened volatility.
That being said, anonymous crypto trader CRG pointed out a significant cluster of spot bids on Binance between $84,000 and $86,000, aligning with a key fair value gap.
Source: CRG/X
Bitcoin’s current price and way ahead
Needless to say, Bitcoin’s sharp drop also triggered a widespread market sell-off, pushing sentiment into “extreme fear” territory for the first time in five months.
While some altcoins have started recovering, Bitcoin remains under bearish pressure, hovering around $88,215.21 after a 1.27% dip in the last 24 hours, according to CoinMarketCap.
The uncertainty in price action reflects traders’ cautious stance, as BTC struggles to regain momentum despite a brief relief in broader market conditions.
Moving forward, Bitcoin’s ability to break past the $97,927 resistance level could signal a potential bullish reversal.
However, if the prevailing bearish momentum persists, a further decline below the critical $86,110 support level remains a strong possibility.
The market’s next move will largely depend on whether BTC attracts enough buying pressure to shift sentiment, or if continued weakness fuels another wave of sell-offs.
As expected, Nic Puckrin, the founder of “The Coin Bureau” put it best when he said,
Source: Nic Puckrin/X
