Bitcoin hit fresh 15-week lows on Feb. 25 as selling pressure from the US market pushed BTC further downward.
BTC price declines hit bear market territory
Data from TradingView showed BTC/USD approaching the $86,000 mark, struggling to find strong support.
At its lowest point since Nov. 13, Bitcoin remained under pressure following a wave of mass liquidations that left traders cautious.
In the past 24 hours, crypto liquidations totaled nearly $1.6 billion, dragging overall market sentiment into “extreme fear.”
With BTC now 20% down from its all-time high just a month ago, financial and trading platform Barchart confirmed that Bitcoin had entered a technical bear market.
“The breakdown below the Range Low of the ReAccumulation Range is now in motion,” noted trader and analyst Rekt Capital.
Rekt Capital also shared a weekly chart outlining Bitcoin’s key price structures since the end of its previous macro bear market in late 2022.
Earlier in February, the analyst pointed out similar deviations in BTC price action, calling them “outsized bargain opportunities.”
Analysts predict potential downside
Trader TheKingfisher analyzed Bitcoin’s price trajectory, suggesting that a deeper correction could bring BTC closer to its previous all-time high of $73,800 from March 2024.
“Long liquidations (bars LEFT of the line) are heavily clustered in the $68K-$77K range. Short liquidations (bars RIGHT) rise significantly between $103K-$138K,” he observed.
“The imbalance suggests more liquidations above the current price. Risk: A large long liquidation zone below may act as support, but if broken, it could trigger a further drop. Target: Shorts could aim for the $103K area.”
Institutional Bitcoin demand may be weakening
On a broader scale, trading firm QCP Capital pointed out that concerns over US inflation have taken a backseat in the current market climate.
“Looking at the bigger picture, equities, fixed income, and gold have mostly moved past the data that was previously blamed for broader market weakness, while BTC remains flat,” it stated in a Telegram update.
QCP also warned that institutional demand may not be as strong moving forward.
“We remain cautious,” the firm added.
“Recent Bitcoin demand has been largely fueled by institutions like MicroStrategy, leveraging equity-linked note issuances. With crypto-related issuance accounting for roughly 19% of total issuance over the past 14 months, this market may be nearing saturation—potentially slowing institutional demand if BTC prices remain stagnant.”
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