Bitcoin Faces Internal and External Pressure—Is a Rally Still Possible?
Bitcoin’s price faces a dramatic downturn, falling below $90,000 and today’s level is as low as $87,000. This dramatic decline keeps cryptocurrency away from its all-time high in January for more than $109,000.
Amid internal and external challenges, sharp sell-offs are arisen, which makes investors uncertain about what to do in the future. Despite the market’s efforts to seek support, the path forward so far remains unclear
However, Mac.D is a contributor to the encrypted fast playback platform Analyze the current market situation And provide detailed prospects.
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Can Bitcoin still hold rallies?
sneak into prospectMAC first talked about the main factors behind the ongoing investment in Bitcoin prices. According to MAC, the combination of internal and external pressures has contributed to Bitcoin’s recent plunge.
Internally, the consequences of the well-known Ethereum-related hacking incident have disturbed the wider cryptocurrency market. Externally, ongoing inflation problems and the reintroduction of tariff policies under the Trump administration Weighing risky assetsincluding Bitcoin.
According to MAC, these factors together resulted in a support level below the critical $90,000 level, with analysts further pointing to two key elements that could impact Bitcoin’s trajectory moving forward.
First, the latest long position liquidation has reached its highest level since November, with the $245 million worth of long position disappearing. Such large-scale liquidation often reduces market depth, thus creating possible conditions Price rebound.
BTC is liquidated in large quantities, at the intersection of rising or falling
“The long position liquidation has occurred. Today’s liquidation marks the highest liquidation since November, with its long position worth $245 million being liquidated.” – By @mac_d46035
Complete post⤵️https://t.co/c4aefybq73 pic.twitter.com/xcwdbayljm
– cryptoquant.com (@cryptoquant_com) February 25, 2025
Second, the average entry price for whale investors who hold Bitcoin for less than six months is about $89,600. This level of psychological support may be helpful Stabilize the market If these whales avoid further sales.
Despite these potential support, the prospects are far from certain. The MAC warns that further declines may occur if support levels cannot be maintained. In this case, he recommends adopting proactive risk management strategies, including short positions in futures or partial liquidation of partial holdings.
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Technical prospects of BTC
Since Bitcoin is currently trading at $87,132, it is clear that the asset violates the $89,600 support highlighted by Mac. While MAC suggests that such violations could lead to further declines, another analyst, Rektcapital, offers more Optimistic technical perspective.
According to Rektcapital, Bitcoin’s recent decline could be a temporary setback. Analysts highlight a potential downside bias, usually before the price returns to a significant recovery, indicating that the rebound can already take shape.
The re-summarization range is now underway. Downside deviation below the low range is underway.$ btc #crypto #bitcoin https://t.co/r5rerj0hfy pic.twitter.com/yr1abidmbg
-Rekt Capital (@RectCapital) February 25, 2025
Feature images created with DALL-E, TradingView’s chart
