Highlights
- A significant sell-off in Bitcoin price breached the $90,000 support level, causing widespread liquidations.
- On-chain data indicates a strong accumulation phase for Bitcoin price.
- CryptoQuant’s CEO advises against panic selling, suggesting it’s time to accumulate.
In the past 38 trading sessions, the Bitcoin price has plummeted by 21%, dropping from $109,000 to around $82,500. This decline has been attributed to various factors within the crypto sector.
The sell-off intensified when alarm bells rang for investors and experts alike when a significant sell-off breached the repeatedly tested $90,000 support level, pushing Bitcoin below the 200-day EMA band.
However, the downward trend has taken a pause recently, increasing the uncertainty more than ever.
With the halt, the Bitcoin price has merely managed to climb back above its crucial 200-day EMA level, currently trading at $86,237, reflecting a 2.6% intraday increase.
This price action suggests that while the market may still face challenges, there is potential for more declines toward the next support block until one catalyst-driven move occurs to push Bitcoin higher.
Despite the prevailing bearish sentiment in the short term, and experiencing massive liquidations, the latest on-chain data indicators present a different narrative for the Bitcoin price.
These metrics indicate a strong accumulation phase is underway. Even analysts like CryptoQuant’s CEO said that now is not the time to sell, hinting at a more optimistic outlook for the Bitcoin price future. Keep reading to know more about whether Bitcoin price could rise or fall.
Bitcoin Retail Investor Demand Could Revive After Breaching Zero Line
CryptoQuant analyst Bilal Huseynov recently shared an optimistic outlook for the BTC price, drawing attention to a chart that highlights an accumulation trend.
He emphasized the importance of Retail Investor Demand (RID) as a key metric for assessing the state of crypto assets.
Huseynov noted that he observed resistance to retail investor demand near the 0% neutral level.
He pointed out that a few weeks ago, around February 14, 2025, the RID metric attempted to break above this neutral zone but ultimately failed, leading BTC crypto to drop to the $88,000 range.
However, in his latest analysis, Huseynov indicated that demand is once again gaining momentum, despite the ongoing resistance at the 0% mark.
Historically, when RID surpasses the neutral level, Bitcoin tends to experience a surge in momentum, suggesting a potentially positive shift ahead for the cryptocurrency.
Analysts: Rebound Likely if Bitcoin Holds Key Support Levels
Recently, it was witnessed when Price dipped massively in Bitcoin, which increased long liquidations dramatically, with CryptoQuant chart indicating over $245 Million wiped out in just the last 24 hours.
This recent BTC price decline has triggered the highest number of long position liquidations since November 2024.
As the Bitcoin price dipped below $90,000, traders faced mounting margin calls, resulting in widespread liquidations across the market.
Similarly, the rapid price drop intensified market pressure, forcing leveraged traders to close their positions.
However, the Bitcoin price has recently briefly recovered and fall seems to have taken a pause. Market analysts suggest that these liquidations have reduced overall market leverage, potentially creating favorable conditions for a significant price shift.
Some analysts believe that if the Bitcoin price can maintain key support levels, the current conditions could set the stage for a rebound.
Supporting this, most recently, CryptoQuant CEO Ki Young Ju expressed his optimism in a recent post, saying that now is not the time to sell but rather to accumulate.
He pointed out that investors who panic sell out of fear are often inexperienced, stating that those driven by fear are typically beginners and a noob.
Ju noted that a 30% correction during a Bitcoin bull cycle is common; for instance, the Bitcoin price dropped 53% in 2021 yet still managed to recover to an all-time high.
Additionally, he cautioned against the poor investment strategy of buying high and selling low. He hinted that it’s not how an ideal money-maker investor does things. He urged investors to approach the market with a clear plan.
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.
