In recent days, Bitcoin has faced a significant downturn, finally breaking free from the price consolidation that had persisted since early February. Following weeks of stagnant trading and uncertainty, BTC has lost crucial support around the $90K mark, sending ripples of shock throughout the market. This decline has sparked speculation regarding a possible bear market, with investors anxious about further losses.
As selling pressure mounts, market sentiment is becoming increasingly pessimistic. Analyst Axel Adler from CryptoQuant has shared crucial on-chain data highlighting that 79.3K BTC were sold at a loss on exchanges within the last 24 hours. This trend reflects a clear instance of panic selling, particularly among short-term holders who are capitulating as prices fall.
Despite the grim outlook, analysts are split on whether this is merely a short-term correction or the onset of a prolonged bearish phase. The upcoming days will be critical as BTC tries to establish robust support and decide on its next major trajectory. Will bulls intervene to defend vital price levels, or is Bitcoin on track for an even more significant decline? All attention is focused on BTC’s capacity to recover lost ground.
Bitcoin Undergoes Severe Sell-Off
Currently, Bitcoin trades below its mid-November highs, which followed President Trump’s election victory. Since that time, BTC has faced a steady downturn, with fear prevailing in the market as prices continue to retract. Concerns about an impending bear market are increasing, causing many investors to worry that Bitcoin’s bullish trend might be drawing to a close.
Analysts and traders remain cautious as BTC endeavors to reclaim essential levels and reverse the bearish trend that has characterized recent price movements. Thus far, Bitcoin has struggled to find substantial support, making investors uneasy about potential further declines.
Adding to this uncertainty, Adler’s data indicates that the recent sell-off of 79.3K BTC at a loss marks the largest Bitcoin sell-off of 2025, showcasing the level of distress among short-term holders. Historically, such significant sell-offs can indicate either the formation of a market bottom as weaker holders capitulate or the beginning of a deeper bearish trend.
The forthcoming trading sessions are pivotal as Bitcoin aims to regain crucial support levels. Should BTC fail to recover quickly, the market may face an extended bearish trend.
Price Dips Below $90K
At present, Bitcoin is trading at $88,400 after several days of intense selling pressure, causing the price to fall below crucial demand levels. Recently, BTC reached the 200-day exponential moving average (EMA), an essential indicator of long-term market health. This level typically serves as a robust support area, but a failure to maintain it could indicate further declines.
Bulls are now facing a crucial test—they must reclaim the $90K threshold and push above $95K to validate a recovery rally. Overcoming these levels would shift momentum back to the bulls and could ignite a renewed surge towards $100K.
On the contrary, if BTC falls below its current support zone, it may trigger a more severe correction, potentially leading the price to lower demand areas. Investors and analysts are closely monitoring whether Bitcoin can stabilize at these levels or if another wave of selling will push prices even lower.
With market sentiment leaning towards a bearish outlook, Bitcoin requires a strong recovery soon to mitigate further downside risks. The upcoming days will be vital, as a failure to maintain the 200-day EMA could confirm an extended bearish phase for BTC.
Featured image from Dall-E, chart from TradingView
