As the liquidation in the crypto market soars to $1.47 billion, Bitcoin records a massive liquidation of $630 million. Bitcoin price has marked a 24-hour low at $86,314, creating its second consecutive extremely bearish candle.
With a downfall of nearly 10%, Bitcoin nears the 200-day EMA line. Will the extended downfall result in a plunge near the $75,000 mark?
Bitcoin Price Tests Key EMA Levels
In the daily chart, the BTC price trend showcases a bearish reversal under the influence of local support or local resistance trendline. A downfall has breezed under the 50- and 100-day EMA lines and is now close to testing the 200-day EMA support.
Bitcoin Price Chart
The downfall has created two bearish engulfing candles and has reached the price levels last seen in November 2024. With the increased selling pressure, the 50- and 20-day EMA lines have given a bearish crossover.
Furthermore, the MACD and signal lines have retained their bearish alignment with the resurgence of new red histograms.
Bitcoin Spot ETF Sell-Off Triggers Market Panic
Amid the recent sell-off, the US Bitcoin spot ETFs recorded a massive outflow of $516.41 million. With the majority of Bitcoin ETFs dumping their BTC holdings, Fidelity led the way with $246.96 million worth of outflows.
BlackRock came second with $158.59 million, and Grayscale came third with nearly $60 million. ARK and 21Shares are yet to update their trading flows for February 24.
With the recent sell-off bringing Bitcoin down to nearly $86,000 levels, the historical in and out of the money indicator reveals that roughly 12% of all Bitcoin addresses are holding at a loss. This is the highest unrealized loss percentage since October 2024.
Can Bitcoin Bulls Defend the $75,000 Support Level?
As per the daily price analysis, the low price rejection in the intraday candle has driven the market price higher to $88,231. This hints at a potential comeback if the bulls sustain dominance near the 200-day EMA line.
However, in case of a bearish closing under the 200-day EMA line, Bitcoin is likely to retest the next crucial support level near $75,000. However, in case of a bullish turnaround, the reversal run could face opposition at the 100-day EMA line at $93,965.
A strong rebound above $90,000 could bring renewed investor confidence, potentially slowing the ongoing sell-off. Conversely, if institutional outflows persist, Bitcoin could be at risk of breaking below multi-month support levels, triggering further panic in the market.
