Bitcoin Price Drops Below $95K Amid Increased Selling Pressure

2 min

Bitcoin price has fallen below a critical support range of $94K to $95.7K, trading at approximately $95,746 as of February 19. This decline exceeds 2% since the beginning of the week, reflecting increasing selling pressure.

Key points include:

BTC is forming a potential reversal pattern with a double top near $108K and shows bearish divergence in the weekly RSI.
A major support zone is between $91K and $95K, aligning with the 111-day moving average at $95K and short-term holders' realized price at $91K.
Current conditions show Bitcoin is yet to breach the mining firms' realized price of about $57K, which historically precedes bear markets.

Whale investor demand for Bitcoin has decreased significantly, with centralized exchanges seeing an increase of 54k BTC over the past four weeks, totaling around 2.24 million BTC. Notably, US spot Bitcoin ETFs experienced a net cash outflow of $60 million, while BlackRock’s IBIT saw an inflow of $68 million.

On a fundamental level, Bitcoin's ecosystem is bolstered by institutional interest and clearer regulatory frameworks. Over 20 US states have proposed strategic Bitcoin reserves, influenced by El Salvador's positive experiences with Bitcoin adoption.

The Bitcoin hashrate remains strong at about 792 Ehash/s, reflecting ongoing engagement from nation-states and institutional investors in BTC mining.