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.
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.
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