Bitcoin plunged below $90,000 on Tuesday in what has become the largest sell-off in 2025. The world’s largest crypto by market cap faced heavy selling pressure as market concerns over new US tariffs and last week’s $1.5 billion hack of ether from the Bybit exchange weighed on investor confidence.
According to data from Coingecko, BTC dropped as much as 7.25% in a single day, reaching a low of $86,141, the lowest level it has reached since November 12, 2024. The crypto is now trading at about $88,333, down 1.2% in the last 24 hours.
Tuesday’s drop puts Bitcoin nearly 20% below its all-time high value of $108,786, reached on Trump’s January 20 Inauguration Day ceremony.
BTC exchange inflows peaked at $7 billion
According to CrypoQuant data, Bitcoin’s price downturn prompted holders to move $7 billion worth of BTC to exchanges at a loss. Market analysts pointed to the clear pattern, as surges in exchange inflows cause the coin to continue following a downward price trajectory.
$BTC exchange inflows hit a year-to-date peak during the panic yesterday.
— Miles Deutscher (@milesdeutscher) February 26, 2025
People were rushing to sell their $BTC as price broke below $90,000. It would be a shame if markets make them regret it with a bounce next… pic.twitter.com/MDTwsd7Hxe
The Bitcoin Exchange Inflow (Top 10) metric, which tracks BTC deposits into the ten largest exchanges, surpassed 5,000 BTC thrice in a single day. This could mean that large holders or institutions may have been preparing to sell before the price correction.
The deposit spikes heightened toward the end of Tuesday’s trading session, when Bitcoin continued dropping below the $86,900 price level.
The $90,000 level had served as a strong support zone for weeks, acting as the bottom of Bitcoin’s narrow trading range since November. Analysts warned that breaking this threshold could trigger a deeper pullback toward $80,000 or lower.
Market strategist Joel Kruger from LMAX Group noted that Bitcoin’s recent sell-off might be part of the entire crypto market’s consolidation phase. He believes investors are now waiting for the next major “event” that could help digital currencies sustain a bullish momentum.
Kruger also pointed out that the market had already priced in expectations of a pro-crypto US administration to cause a price rise. Without new developments, he propounded that macroeconomic conditions, like trade tariffs, now dictate Bitcoin’s price action.
“There is room for Bitcoin to drop toward the $70,000 to $75,000 range without doing anything to compromise the long-term outlook,” Kruger reiterated, “We suspect there will be plenty of demand as we head down towards those levels.”
Will Bitcoin crash below $80K?
Bitcoin has slipped down 5% since the start of 2025 but remains up roughly 25% from the highs it hit during the November 2024 presidential election. Yet, technical indicators suggest the digital asset may face further downside pressure in the short term.
It has broken below its falling trend channel and amassed an accelerated rate of decline due to the absence of strong support levels in the price chart. A potential recovery could see Bitcoin face resistance at $94,000, a level traders are watching closely.
The Relative Strength Index (RSI) has dropped below 30 following weeks of price declines, building up a strong negative momentum. The RSI fall could signal an oversold market that will prompt a short-term rebound, but BTC remains technically weak in the near term.
Still, the cryptocurrency now faces resistance on any attempt to climb back toward the channel’s lower boundary. A break below $92,364 confirmed a double top formation, a bearish pattern that could push prices toward $80,521 or lower.
The breakdown through $92,000 adds to the market’s negative outlook, thwarting any potential rebounds and increasing the likelihood of the coin to face resistance at that level.
If Bitcoin manages to recover above the neckline of the double top formation, the price could climb toward $98,500, a level that aligns with the 50-day moving average. This region has historically acted as a point of resistance, stretching back to late 2024.
A move above this threshold could open the door for a retest of the $106,000 level and a breach of its all-time high level, at $108,000.
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