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Bitcoin (BTC) has dropped to a three-month low of $87,629 on Feb. 25, losing its critical $90,000 psychological support, according to Cointelegraph Markets Pro data. Analysts warn that the price could slide further to $81,000 as ETF outflows and investor uncertainty continue to exert downward pressure on the market.
Analysts Predict a Potential Drop to $81,000
Ryan Lee, chief analyst at Bitget Research, attributes the sell-off to eroding risk appetite among crypto investors. In the absence of bullish catalysts, Bitcoin remains vulnerable to deeper corrections. “Bitcoin is consolidating, and with the bears pulling back below $89,000, the next support levels at $86,000 and $81,000 could be tested if the bearish trend continues,” Lee told Cointelegraph.
Despite a $2 billion Bitcoin investment from Michael Saylor’s MicroStrategy, the market showed little positive reaction. This suggests that Bitcoin may require significantly stronger bullish momentum to recover from its current downward trajectory.
Key Support Levels and Liquidation Risks
Bitcoin faces a crucial test at the $85,000 support level. A drop below this threshold could trigger over $1 billion in leveraged long liquidations across multiple exchanges, according to CoinGlass data. Hong Yea, co-founder and CEO of hybrid crypto exchange GRVT, warns that geopolitical concerns, economic uncertainties, and regulatory unpredictability could further drag Bitcoin below this level.
The ongoing market correction coincides with significant ETF outflows. On Feb. 24 alone, U.S. spot Bitcoin ETFs recorded net outflows exceeding $516 million, marking six consecutive days of selling pressure. Since Feb. 18, Bitcoin’s price has declined by over 7%, aligning with the ETF sell-off trend.
Impact of Recent Crypto Hacks and Market Sentiment
Adding to market jitters, last week’s $1.4 billion Bybit hack—the largest in crypto history—dealt a psychological blow to investors. While the long-term impact remains uncertain, the immediate aftermath has contributed to Bitcoin’s price instability.
Also Read: Michael Saylor Advocates Bitcoin Plan in SEC Meeting
With Bitcoin struggling to hold key support levels, investors remain cautious. If bearish sentiment persists, a further decline to $81,000 remains a strong possibility in the coming weeks.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
