Bitcoin Plunge Below $89,000: Are We Nearing a Bottom? Analyst Weighs In
Bitcoin’s downward trajectory continues, with its price drop below $89,000, losing 8.5% over the past week. This extended decline has raised investors’ concerns about whether the bottom is ultimately in.
Recent market behavior shows significant yielding is taking place, and some analysts think it is OK Indicates a turning point.
A massive Bitcoin sell-off: bottom is it?
A crypto analyst named Caueccomentomy has emerged a critical observation, recently Highlight He describes the “largest Bitcoin Surrender” incident in 2025.
In an article titled “The Biggest Bitcoin Surrender since August 2024 – The Biggest Bitcoin Surrender”, Cauecomany pointed out that more than 79,000 BTC was sold at a loss in one day, totaling about $1.7 billion.
According to Cauececomy, the sell-off is reminiscent of Japan’s surrender activities in August 2024 Interest rate hiking The global market triggers a wide range of belongings.
Cauecomy’s analysis shows the key points of Bitcoin. He observed that previous surrender activity in August 2024 marked a short-term bottom as the market stabilized and eventually rose to $100,000 between December and December.
Although he admitted that it was impossible to guarantee that current prices would not fall further, the size of this vote showed a Potential Opportunities For long-term investors.
Analysts’ insights offer different situations: Despite the ongoing pressure on the market, the degree of recent sales activity may indicate that many “weak hands” have been shocked.
This process, while painful in the short term, usually lays the foundation for a stronger price base, thus bringing recovery capabilities down the line.
The biggest Bitcoin capitulation since August 2024 – What is the bottom?
“The total of more than US$1.7 billion in coins, which lost on the 25th, was the biggest surrender since August 5.” – By @cauecomy
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– cryptoquant.com (@cryptoquant_com) February 26, 2025
Continuous bearish indicators continue
Despite these observations, other analysts are still cautious about market lowest points. In another analyze Shared on CryptoQuant’s platform, an analyst named Nino highlights several bearish indicators Surfaced in recent weeks.
The negative funding rates of various derivative exchanges, coupled with negative premiums, indicate continued dominance and increased sales pressure in the spot market.
Nino explained that when the capital rate is negative, futures prices trade below spot prices, reflecting Short-term interest. Meanwhile, negative Coinbase Premium shows that selling on Coinbase is already large enough to push its spot price higher than that.
Crypto analysts added:
Together, these figures introduce a strong sense of bearishness among market participants, with short selling pressures exceeding the long position of the recent downturn. All of these findings are strictly based on the results observed from the chart, thus giving a glimpse of the overall market sentiment.
Feature images created with DALL-E, TradingView’s chart
