Bitcoin (BTC) has fallen below the crucial $90,000 mark for the first time in a month. This triggered a wave of liquidations and ramped up market volatility.
The sudden downturn has left many traders in the red. Data from IntoTheBlock shows that about 12% of all Bitcoin addresses are currently underwater—the highest percentage of unrealized losses since October 2024.
Looking back at IntoTheBlock’s historical “In/Out of the Money” data, it’s clear many investors bought BTC at higher prices, especially between $90,000 and $100,000.
With the price now at $89,479, these addresses are “out of the money.” Historically, similar situations have come before increased sell-offs as traders try to limit their losses, pushing Bitcoin’s price even lower.
With Bitcoin briefly dropping below $90k, roughly 12% of all Bitcoin addresses are holding at a loss.
🔴This is the highest unrealized loss percentage since October 2024 pic.twitter.com/pngLz4G4wc
— IntoTheBlock (@intotheblock) February 25, 2025
Bitcoin has seen a big uptrend over the past year, starting in mid-2024 and peaking at $109K in late January before showing signs of slowing down in early 2025.
However, in the last 24 hours, the cryptocurrency has crashed 6.46%, leading to $1.34 billion in liquidations within the same period, according to Coinglass. Also, $1.07 billion was wiped out in the last 12 hours, with $493.36 million gone in just the past four hours.
Bitcoin Price Plunge: Key Levels to Watch
According to well-known analyst Ali Martinez, Bitcoin is breaking below a parallel channel.
If Bitcoin can’t quickly climb back above $92,500, it’s very likely it will test support again at $81,000. On the other hand, BitMEX co-founder Arthur Hayes predicted BTC could plummet to $70,000 if hedge funds invested in spot BTC ETFs start to sell off their holdings.
#Bitcoin goblin town incoming:
Lots of $IBIT holders are hedge funds that went long ETF short CME future to earn a yield greater than where they fund, short term US treasuries.If that basis drops as $BTC falls, then these funds will sell $IBIT and buy back CME futures.
These… pic.twitter.com/3PskTxrBPR
— Arthur Hayes (@CryptoHayes) February 24, 2025
Related: Bitcoin’s Range-Bound Trading Ethereum Could Benefit, Analysts Say
Looking at the daily chart below, Bitcoin’s RSI (Relative Strength Index) is currently at 30.80, which suggests Bitcoin is getting close to being oversold. If the RSI drops below 30, BTC might bounce back a bit in the short term. However, if strong selling continues, the price could keep falling before any real recovery happens.
Is Bitcoin’s Downturn Set to Continue?
Adding to this, Bitcoin’s price has also dropped below the lower Bollinger Band. This indicates higher volatility and that sellers are in control.
Related: Negative Crypto Sentiment: Bitcoin’s Booster?
Historically, when BTC trades outside the lower band, it usually moves back toward the midline (20-day SMA). However, if the selling doesn’t stop, this sign alone might not be enough to stop the price from going down further.
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