Bitcoin whales are emerging as key players in providing price support for BTC following a major liquidation event.
On Feb. 25, Bitcoin plunged to its lowest level in months as a new wave of liquidations drove its price down to nearly $86,000.
BTC/USD 1-hour chart. Source: Cointelegraph/TradingView
February BTC price losses near 13%
Bitcoin's February losses are nearing 13%, with price pressure intensifying across Asian and European trading hours, according to data from Cointelegraph Markets Pro and TradingView.
BTC/USD plunged to $86,314 on Bitstamp, marking its lowest level since November 15, 2024. The downturn pushed crypto market sentiment back into the “extreme fear” zone, as reflected by the Crypto Fear & Greed Index.
Crypto liquidations (screenshot). Source: CoinGlass
In the past 24 hours, total crypto liquidations exceeded $1.5 billion, per CoinGlass data, with Bitcoin swiftly wiping out long positions. The only significant buyer interest appears in the mid-$80,000 range, acting as a key support zone amid mounting selling pressure.
Reacting, crypto investor and entrepreneur Alistair Milne noted that on daily timeframes, BTC/USD had triggered an “oversold” signal on the relative strength index (RSI) indicator, which fell below 30 on the day.
“Bitcoin touches oversold territory on the daily for the first time since August last year (when Bitcoin crashed to $49k),” he wrote in a post on X.
Some market participants were less optimistic, including on higher timeframes, with trader SuperBro warning that the fate of the bull market was at stake.
“This is about as far as we can go while keeping the near-term bull thesis intact,” he told X followers about the latest BTC price dip.
Bitcoin whale support in focus
Bitcoin has tested sub-$90,000 levels before as part of its multimonth trading range.
Related: $90K bull market support retest? 5 things to know in Bitcoin this week
Its last dip into the $80,000 range was in mid-January as part of a daily candle wick, which has remained unfilled since.
Then, BTC/USD reached $89,200 before reversing, and the surrounding area has since strengthened as support.
As Cointelegraph reported, “newer” Bitcoin whales those active for up to six months have their cost basis immediately below the $90,000 mark.
“The realized price of new whales = $89.2K, which is essentially the strongest support level for the current consolidation,” Axel Adler Jr., a contributor to onchain analytics platform CryptoQuant, reported earlier this month.
More recently, exchange order book liquidity trends have led market participants to eye $86,000 as a potential reversal zone.
