Highlights
- February was underwhelming compared to January, with bears suppressing any momentum of Bitcoin price toward the $100,000 mark.
- The Bybit hack has left Bitcoin trading in a tight range, dampening risk appetite.
- The Bitcoin Sell-Side Risk Ratio has dropped to 0.08%, suggesting a potential accumulation phase.
The Bitcoin price is under the $100K mark due to security reasons, geopolitical tensions, and several on-chain metrics that spurred pessimism.
Consequently, the BTC price stayed underwhelmed throughout February. Several on-chain indicators are showcasing mixed signals, with some pessimistic while others hinting for a recovery ahead.
Keep reading to find out whether optimism for a Bitcoin price recovery is incoming or not.
How Was February for Bitcoin Price?
Following the November 2024 rally, which saw the crypto and the Bitcoin price surge on the heels of Donald Trump’s election victory, the expectations for 2025 were high.
However, January did not meet those expectations. Many investors even overlooked January’s returns, believing February would bring significant gains instead.
As the market now approaches the end of February, it appears this month has underperformed compared to the previous one.
Weak momentum came on when Trump’s trade tariff threats against Canada, China, and Mexico started to impact the market.
This led Bitcoin price to fall from $105K to a low of $92K before stabilizing, as a wave of pessimism swept through the crypto space, marking February as a really disappointing month.
This week, there was a glimmer of momentum, but bears quickly suppressed it, preventing the BTC price from reclaiming the $100K mark.
The recent Bybit hack has left Bitcoin trading in a tight range, as the security incident has dampened the risk appetite of investors and has further complicated BTC crypto’s ability to gain momentum.
In response to the hack, Bybit has initiated a buyback of ETH, securing $1.23 Billion worth through various loans. While this buyback may provide some relief to worried market participants, But the BTC price future trajectory remains closely tied to geopolitical risks and several on-chain factors.
Bitcoin Sell-Side Risk Ratio at Historical Low: What Does it Mean?
In a recent post on X, Ali shared insights from a Glassnode chart featuring the “supply in profit trend.”
He highlighted that the monthly average of new Bitcoin ($BTC) addresses has dipped below the yearly average, indicating a decline in on-chain activity. This trend often points to weaker network fundamentals and reduced utilization.
However, Ali also examined the Bitcoin Sell-Side Risk Ratio, which has seen a significant drop to historically low levels.
This decrease suggests a local bottom and signals an accumulation phase characterized by reduced selling pressure.
Currently, the ratio sits around 0.08%, aligning with previous patterns where such dips often precede periods of market stabilization or bullish reversals. This could offer a potential favorable entry point for investors.
Historically, significant drops in this ratio, per the chart like those observed in November 2023 and September 2024 have been followed by gradual increases in the BTC price in the following months.
For example, the reduction in November 2023 led to a steady price recovery, reflecting decreased sell-side pressure and heightened buying activity.
While the low sell-side risk ratio indicates a bullish outlook, there is also the possibility of an adverse scenario.
If new negative catalysts emerge, it could result in sustained low prices or further declines, despite the current low risk of sell-side pressure.
What Does the Bitcoin Price Chart Show?
Bitcoin price is currently in a consolidation phase, trading within a well-defined range affected by critical price levels acting as key psychological and technical pivots.
Despite experiencing a choppy week, BTC crypto is showing a mixed trend, trading below the 50-day EMA but above the 200-day EMA.
This positioning indicates bearish signals in the near term, while the longer-term outlook remains bullish.
A breakout above the 50-day EMA could pave the way for a return to the significant $100,000 level.
If Bitcoin successfully reclaims this threshold, the previous record high of $109,000 may emerge as the next key resistance point.
On the other hand, if Bitcoin price falls below the $92,000 to $95,000 range, bearish sentiment could intensify, with sellers targeting the $90,000 support level.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
