Bitcoin’s recovery attempt is drawing attention after a week of steady losses, with one market watcher warning of a deeper fall if the coin fails to push past the $120,000 region.
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The price of the world’s biggest cryptocurrency has already slipped by over 7% since touching $124,450 last week, raising doubts about the strength of its next move.
Wave Structure Signals Critical Stage
According to technical analyst CasiTrades, Bitcoin touched a low of $112,500 earlier today, a level that aligned with multiple timeframe targets.
The move also came with bullish divergences on momentum indicators, which pointed to a short-term rebound. The analyst framed this drop as part of a corrective pattern, calling it Wave 1 of an A-wave.
The next stage, labeled Wave 2, is expected to deliver a relief bounce. CasiTrades suggested that this move could carry Bitcoin back into the $119,900 to $121,900 zone.
They laughed & Bitcoin Delivered Exactly as Forecasted. Why the Next Move Matters Even More!
Following up on my last post, where I mapped out the A-wave targeting the major .382 retracement at $77K, we just completed Wave 1 of A with the recent low at $112,500. That was a… pic.twitter.com/cOn8rJ9OZL
— CasiTrades
(@CasiTrades) August 20, 2025
If rejection happens there, the decline could intensify into Wave 3, with possible downside reaching as far as $88,000.
Reports explained that the bearish scenario would be invalidated if Bitcoin could print a new all-time high beyond $124,500. That would necessitate a reset in the corrective setup, which would have bulls with more leverage in the short term.
Altcoins Show Signs Of Rotation
As Bitcoin struggles with resistance, bigger-cap altcoins have been exhibiting mixed action. CasiTrades thinks that traders may move into these assets in Bitcoin’s downtime, anticipating that they will make more considerable movements in the meantime.
XRP, which dropped to $2.85 earlier in the day, has rebounded slightly and now trades at $2.90. That still leaves it down 1.30% over the last 24 hours. Ethereum is faring better, gaining 1.8% to trade at $4,269, while Solana added 2.5% to reach $183.
Market watchers say this kind of rotation is not unusual. When Bitcoin stalls at major resistance levels, traders often chase higher returns in altcoins that carry more volatility.
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Uncertainty Ahead For Traders
The focus remains squarely on the $120K–$122K area. A clean breakout would indicate that Bitcoin is gaining strength again, while rejection would validate CasiTrades’ expectation of a greater fall.
They are now considering those possibilities, with some waiting to build up on dips and others opting to remain in wait-and-see mode until the picture becomes clearer.
For the time being, the market is divided between anticipation of a rebound and fear of further correction. Altcoins are showing some relief with isolated areas of green, but the response of Bitcoin at resistance will tend to dictate the tone for the next few days.
Featured image from Unsplash, chart from TradingView
Bitcoin’s price fell to $86,099 on February 26th, wiping out almost $1.06 billion from crypto’s market cap and sending ripples across the industry. According to Coinglass tracking, around 230,000 positions have been liquidated for the day.
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As a sign of bearish sentiment, the digital asset’s open interest has dipped to 5%, reflecting deleveraging among investors and holders. On-chain data also suggests that exchange inflows surged to 14.2%, potentially suggesting panic selling among holders. Furthermore, funding rates are now in negative territory, indicating investors’ sentiments have shifted.
Massive Losses For Holders As BTC Tests $86K
As the world’s top digital asset, Bitcoin’s adverse price action caused plenty of ripples in the industry. With its price testing below $90k, thousands of positions were liquidated, and strong withdrawals from spot Bitcoin ETF funds were recorded. According to multiple reports, the five-day outflow for ETFs amounted to $1.1 billion, with $516 million lost on February 24th.
In a Twitter/X post, InTheBlock noted that around 12% of all BTC addresses are in the red. The post added that it’s now the highest unrealized loss percentage for Bitcoin since October 2024.
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
Crypto-Related Stocks Fall
Aside from individual holders, crypto-related stocks suffered from Bitcoin’s recent drop. Michael Saylor’s Strategy is one of the biggest victims, with its stock price dropping 11% in the past 24 hours. The company’s stock has been declining since its peak in November and has now fallen 55% from its high.
Strategy boasts a portfolio worth over $43 billion, including 499,096 Bitcoin. With Bitcoin’s price falling, many crypto observers speculate where Strategy will sell some of its assets. However, some experts have shot down this idea, saying it’s doubtful that a company will fully commit to crypto.
Other crypto-related stocks also tumbled, with Robinhood (HOOD) dipping by 8%, Coinbase (COIN) suffering a 6.4% decline, and Marathon Digital (MARA) and Bitcoin miners Bitdeer (BTDR) dropping 9% and 29% respectively.
Traditional Stocks Also Suffered
Bitcoin’s underperformance was also felt in the broader market, with declines in the traditional financial markets. The Nasdaq Composite dropped by 2.8%, and the S&P 500 surrendered 2.1% of its market cap. Observers also noted the sudden strength of the US Dollar Index, suggesting that many investors are looking for “safety havens” for their investments.
On-chain data also indicates a recent surge in crypto whale activities. Bitcoin whales have sold over $1.2 billion worth of digital assets.
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According to analysts, Bitcoin’s decline is caused by macroeconomic conditions. The market is still reeling from US President Donald Trump’s tariff announcement, and geopolitical tensions between China and the United States are pushing some investors to rethink their long-term plans.
Featured image from Gemini Imagen, chart from TradingView
Bitcoin price has surged to a new all-time high of $88,000 on November 11, sparking discussions around the cryptocurrency’s future price potential. Matt Hougan, Chief Investment Officer of Bitwise Asset Management, stated that this rally could be a precursor to Bitcoin reaching six-figure valuations and potentially even $1 million in the long run.
Hougan emphasized the strong market dynamics driving Bitcoin’s latest surge, including increased interest from long-term holders and institutional investors.
Bitwise CIO Predicts BTC Can Reach $1M
Market analysts attribute Bitcoin price rapid appreciation to a combination of rising demand and a limited supply. According to Matt Hougan, Bitcoin’s long-term holders are now less inclined to sell, creating a scarcity that drives up prices.
“An equal part of this rally is that people have stopped selling. Long-term owners are no longer willing to part with bitcoin below $100k,” Hougan shared on X.
The post-2024 Bitcoin halving, which reduced the new supply of Bitcoin entering the market, has amplified this scarcity effect. Industry experts argue that each halving cycle tends to create a supply shock, as seen in previous bull markets following halvings in 2020, 2016, and 2012.
Jesse Myers, a Bitcoin analyst, noted that “there’s not enough supply available at current prices to satisfy demand,” suggesting that the recent price gains could continue as demand outpaces available supply.
Institutional Inflows and ETF Activity on the Rise
The introduction of Bitcoin Exchange-Traded Funds (ETFs) has further fueled the rally, as institutional investors increasingly allocate capital to Bitcoin. On November 11, total spot Bitcoin ETF trading volume exceeded $6.9 billion, indicating heightened institutional interest.
The launch of Bitcoin ETFs has provided a regulated avenue for investment, attracting new participants to the market. Additionally, Polymarket, a popular prediction platform, showed a sharp increase in bets on Bitcoin reachinag $100,000 before year-end.
As of November 11, the probability of Bitcoin breaking this threshold reached 57%, with total trading volume on this prediction surpassing $2.6 million.
Bitwise CIO Stance On Macroeconomic Factors
Bitcoin’s current rally is also driven by favorable macroeconomic conditions. As central banks, including the Federal Reserve and European Central Bank, signal potential rate cuts, the market anticipates a more inflationary environment.
Bitwise CIO Matt Hougan pointed out that “global rate cuts” and “economic stimulus in China” are supporting conditions for Bitcoin’s price increase. Additionally, the U.S. presidential election result by Donald Trump win has injected optimism among Bitcoin proponents, with speculation around a potentially more Bitcoin-friendly administration adding to the rally’s momentum.
Other prominent figures, such as Max Keiser, a senior Bitcoin advisor to El Salvador’s government, have speculated that the geopolitical climate could further benefit Bitcoin. Keiser suggested that some Middle Eastern countries and even the Trump campaign may be considering substantial Bitcoin purchases, though these claims remain speculative. For the US, the Bitcoin Reserve, despite facing criticism earlier today has been one of the promises of Trump to the crypto community.
Market Sentiment Shifts Toward Higher Price Expectations
As Bitcoin’s price climbs, sentiment among investors and analysts appears to be shifting toward higher price targets. Tyler Winklevoss, co-founder of Gemini, remarked that Bitcoin’s recent appreciation “gives a glimpse” into potential future growth, linking it to broader economic trends.
Crypto analyst Willy Woo highlighted inflows into the Bitcoin network reaching an average of $1.7 billion per day, suggesting strong buying activity.
The rapid price surge has triggered profit-taking among some investors, as data from Santiment indicates an increase in transactions aimed at capturing gains. However, the majority of investors appear to be holding on, signaling confidence in further gains.
Bitwise CIO Matt Hougan and other industry experts believe that Bitcoin’s current trajectory could pave the way for a six-figure valuation and, potentially, a longer-term path to $1 million per Bitcoin.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The recent retreat in Bitcoin price has taken the market by storm, while some experts remain optimistic about its future. Latest on-chain data and technical indicators suggest a significant bullish reversal may be on the horizon, potentially driving Bitcoin to $88,000.
Notably, this optimistic forecast is fueled by a combination of historical trends and a notable flag pattern, igniting investor confidence amid the broader market volatility.
On-Chain Data Indicates Bitcoin Price Rally To $88K Soon
Prominent crypto market analyst Crypto Faibik has predicted a bullish turn for Bitcoin, citing a “Bullish Flag Pattern” on the weekly chart. In a post on the X platform, Faibik asserted that Bitcoin could surge to $88,000 by July or August.
Notably, the flag pattern, often seen as a continuation signal, suggests that Bitcoin might be preparing for another upward move after its recent consolidation. Supporting this outlook, another well-known analyst, Ali Martinez, emphasized the current “Fear” sentiment in the market, as reflected by the Bitcoin Fear and Greed Index, which has fallen to 30.
Meanwhile, Martinez noted that this drop in sentiment typically presents buying opportunities. Besides, he pointed out that the Relative Strength Index (RSI) hitting oversold levels has historically preceded substantial price rebounds.
Martinez highlighted that in previous instances over the past two years, similar RSI conditions led to Bitcoin price increases of 60%, 63%, and 198%. In addition, Martinez also pointed to the Market Value to Realized Value (MVRV) Ratio, which is currently below -8.40%.
Looking at the historical trends, such levels have led to notable price surges. He observed that the MVRV ratio dipping to these levels previously triggered price jumps ranging from 28% to 100%. With Bitcoin currently under $60,000 and the MVRV ratio at -8.96%, Martinez suggests this could be an ideal time for investors to buy the dip.
Also Read: Jack Mallers’ Strike Launches In UK, Will It Boost Bitcoin Adoption?
Institutional Accumulation and Market Dynamics In-Play
Complementing these technical analyses, data from on-chain analytics firm IntoTheBlock indicates substantial accumulation by large Bitcoin holders. According to their report, wallets controlling at least 0.1% of the total Bitcoin supply added 7,130 BTC, valued at approximately $436 million, in a single day.
This significant net inflow marks the highest level since late May, suggesting that despite market fears, uncertainty, and doubts (FUD) institutional investors are capitalizing on the recent price dip to accumulate more Bitcoin.
The combined insights from Crypto Faibik, Ali Martinez, and IntoTheBlock highlight a growing sentiment among market participants that Bitcoin’s recent decline might be a precursor to a strong recovery. The flag pattern and on-chain accumulation align with the historical resilience of Bitcoin during periods of market fear, suggesting a possible rally toward $88,000.
On the other hand, recent reports indicate that Morgan Stanley is likely to approve Bitcoin ETFs on its platform for customers by August 2024 end. The report, citing a “very senior source”, has further fueled optimism over growing institutional interest in the flagship crypto.
As of writing, Bitcoin price exchanged hands at $61,254.19, noting a flat change from yesterday. Furthermore, the crypto has touched a low of $58,601.70 in the last 24 hours, with its trading volume soaring over 32% to $37.15 billion.
Also Read: Metaplanet Creates Offshore Arm for Enhanced Bitcoin Strategy
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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