In the early hours of February 25, the price of the leading cryptocurrency tested the $91,000 level, which had previously limited its decline in January and February.
At the time of writing, the asset is trading at $91,600, down 4.5% over the past 24 hours.
Seven hours after consolidating above the $91,000 support, a new wave of selling pushed prices to new yearly lows. At one point, the price dropped to $88,200.
The volume of liquidations increased to $1.34 billion.
The weakness of digital gold led to a correction in altcoins. Ethereum’s price fell below $2500, and Solana dropped past $140.
The negative revaluation of the top 10 cryptocurrencies by market capitalization, excluding Bitcoin, ranges from 5.4% to 12.4%.
The daily volume of liquidations exceeded $880 million.
The cryptocurrency fear and greed index plummeted from 49 to 25 points in a day, entering the zone of extreme fear.
Such levels were last seen in early September of the previous year, during the last Bitcoin correction before a rise of more than 100%.
Since the beginning of February, digital gold has depreciated by 10.6%; a deeper decline was only seen in 2014 (-31%). On average, the leading cryptocurrency increased in value by 12.2% (median) during this month.
Trader and analyst Rekt Capital highlighted the need for Bitcoin to reclaim the ~$96,700 mark by the end of February. This would result in a monthly close above the top of the “bull flag,” confirming the breakout and setting the stage for a continued trend.
The Bitcoin post-breakout retest of the Monthly Bull Flag has been a volatile retest thus far
Bitcoin will need to Monthly Close above the Bull Flag top to confirm the breakout & set itself up for trend continuation over time
~$96700 needs to hold$BTC #Crypto #Bitcoin https://t.co/HXEsC7kN3p pic.twitter.com/TcwNYkCdoN
— Rekt Capital (@rektcapital) February 24, 2025
CryptoQuant has concluded that the leading cryptocurrency may enter a new bearish phase.
Previously, CoinDesk identified three risks for Bitcoin losing the $90,000 level.