Key Points
- Bitcoin’s value fell by 25% from its January 20 peak due to macroeconomic factors and technical corrections.
- Despite a modest increase, analysts predict potential further declines and increased volatility for Bitcoin.
Bitcoin’s value has declined significantly, marking its second-worst February performance on record. The price drop is expected to continue into the new week, influenced by various macroeconomic factors and a technical correction.
The value of Bitcoin was down by 25% from its all-time high of $108,786 on January 20. This decrease was due to forward-facing inflation indicators that encouraged a risk-off mood among investors, along with continuous outflows from spot exchange-traded funds on Wall Street.
Bitcoin’s Performance and Predictions
Despite the U.S. Core Personal Consumption Expenditures price index data meeting analyst expectations—falling to 2.6% from 2.9% year over year—Bitcoin only experienced a slight increase, climbing to $81,800. Previously, it had fallen to as low as $78,400, marking a three-month low.
Analysts at B2BINPAY noted that this is the first significant correction since Bitcoin reached its all-time high less than six weeks ago. The correction was primarily technical, exacerbated by factors such as Trump’s tariffs and sovereign trade wars.
Further Decline Possible for Bitcoin
A consensus among Bitcoin observers suggests that there could be more volatility ahead. B2BINPAY’s team shared this view, referring to support and resistance bands from Bitcoin technical analysis.
From a technical perspective, if Bitcoin approaches the 3M SMA support at $71,880 and fails to bounce back toward $80,000, the outlook could become less favorable due to the possibility of further decline.
Similarly, Standard Chartered predicted that Bitcoin might retest $69,000 by early March. IntoTheBlock data showed significant accumulation between $60,000 and $72,000, potentially providing a defense against larger declines. Over six million addresses acquired 2.64 million Bitcoin in that range.
