Bitcoin Drops to $86,000: What’s Happening?
Bitcoin (BTC) plunged to a three-month low near $86,000 on February 25. The weekly decline of nearly 10% marks BTC’s largest quarterly drop of around 20% since August 2024. With bearish sentiment gripping the market, short-term holders (STH) sold off approximately 27,500 BTC at a loss within 24 hours.
Whales Accumulate Despite Market Downturn
While retail traders panic, Bitcoin whales are buying the dip. Data from CryptoQuant shows that whales deposited 26,430 BTC into accumulation addresses on February 24. These wallets typically link to over-the-counter (OTC) deals and long-term custody. Notably, earlier in the week, Strategy purchased 20,356 BTC for $1.99 billion, reinforcing long-term bullish sentiment.
Key Support Levels to Watch
BTC closed below the $92,000 mark on February 24, confirming a double-top pattern. This bearish formation suggests a potential 16% drawdown, with a target between $78,000 and $76,000. Traders are eyeing a liquidity gap from $81,700 to $85,100, formed on November 11, 2024. Spot bids clustering between $84,000 and $86,000 on Binance indicate possible buying support in this zone.
What’s Next for Bitcoin?
Bitcoin could bounce between $85,000 and $81,000 if buyers step in. However, failure to hold above $81,000 may push prices down to the final support between $77,000 and $80,000. A drop to $77,000 would fulfill the double-top pattern’s projected target.
Bottom Line
Bitcoin’s price action remains volatile. While short-term holders incur losses, whales and institutions seem to be capitalizing on the dip. Traders should closely monitor support zones and watch for potential rebounds or further declines. Stay alert—this rollercoaster ride isn’t over yet.
