$86,000 Bitcoin Price Drop: Whales Are Buying, But Is This the Bottom?

Bitcoin Price Drop: Will $86,000 Mark the Bottom or the Start of a Deeper Dive?

Bitcoin Price Drop – On February 25, Bitcoin (BTC) dropped to a 3-month low near $86,000, marking a significant correction after weeks of defending its long-term market structure. As the price plunged, some analysts speculated that the downturn could continue in the upcoming weeks. Data indicated that Bitcoin experienced its largest quarterly drop of approximately 20% since August 2024, double the average 8.9% drawdown seen over the past year.

Whale Activity Amidst Price Correction

Despite the recent decline, Bitcoin whales appear to be actively accumulating more coins. On February 24, around 26,430 BTC were transferred to whale accumulation addresses, which are typically associated with OTC deals and long-term custody. This pattern of whale accumulation is significant, considering the sharp drop in price.

Additionally, Strategy recently made headlines by purchasing 20,356 BTC for $1.99 billion, signaling confidence in Bitcoin’s long-term value.

Technical Analysis: Bitcoin’s Potential Price Range

As Bitcoin’s price struggles to maintain its position, a double-top pattern was confirmed on February 24, with the price closing below the $92,000 range. A bearish reaction followed the pattern’s completion, leading to an estimated technical drawdown of about 16%, pushing Bitcoin’s potential support levels to the $78,000-$76,000 range.

Fair Value Gap & Spot Bids Around $84,000

A significant liquidity gap between $81,700 and $85,100 was formed on November 11, 2024, and it remains unfilled. There are large spot bids around the $84,000 to $86,000 range on Binance, and this area could act as a potential support zone. If Bitcoin fails to hold the $81,000 support level, the final support is expected to rest between $77,000 and $80,000, potentially completing the double-top pattern’s target.

Cautious Outlook with Whales in Control

While Bitcoin faces a volatile market, marked by a significant price correction, the ongoing accumulation by whales and large institutional purchases indicate strong support for the digital asset in the longer term. Traders and investors will need to closely monitor the price action in the coming weeks to determine the next potential breakout or breakdown points.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.