Bitcoin (BTC) has dropped to its lowest level in over three months, hitting $85,341 on Bitstamp during Wall Street’s opening session on 26 February. The decline comes as market analysts observe liquidity manipulation and the movement of hacked funds, while some traders anticipate a strong rebound in the coming weeks.
BTC Faces Pressure from Manipulation and Whale Activity
Data from TradingView confirmed Bitcoin’s latest dip, marking its weakest price point since mid-November. The decline is partially attributed to the movement of hundreds of millions of dollars in stolen funds from the Bybit exchange hack, which continues to add selling pressure to the market.
Meanwhile, large-scale traders, known as “whales,” have been accused of exacerbating market instability. Trading resource Material Indicators pointed to order book activity on Binance, where bid liquidity suddenly vanished just before Bitcoin’s latest drop.
BTC/USD 1-hour chart.
“FireCharts shows another nasty rug pull of bid liquidity as BTC price was testing support,” the platform posted on X. “This is about as clear of an illustration of what manipulation looks like you are going to find.”
Analysts See Downside Exhaustion and Possible Rebound
Despite the latest downturn, some analysts remain optimistic about Bitcoin’s trajectory. Crypto trader and analyst Michaël van de Poppe suggested that the worst of the decline may be over.
“I mentioned before that this is the area for Bitcoin to hold on. Take liquidity beneath $85K, then basically everything is taken,” he told his X followers.
He also pointed to Bitcoin’s relative strength index (RSI), which stood at 28.6 on daily charts and 25.9 on the four-hour timeframe, placing it firmly in “oversold” territory. This suggests that Bitcoin may be nearing a point where buyers step in to push prices higher.
Van de Poppe also highlighted a correlation between Bitcoin and gold, noting that as gold prices dropped, Bitcoin pairs began to bounce back, hinting at a potential reversal.
Traders Eye $93,500 Rebound in Coming Weeks
Popular trader and analyst Rekt Capital has identified $93,500 as the next key level for Bitcoin to reclaim.
“If this deviation is to end up as a downside wick then price could revisit ~$93,500 by the end of the week,” he noted in his latest market analysis.
BTC/USDT order book data for Binance. Source: Material Indicators/X
He drew comparisons to Bitcoin’s price movements after its April 2024 halving event, where similar patterns emerged. If history repeats itself, BTC could reach the $93,500 mark in the next two to three weeks as part of a post-breakdown relief rally.
While short-term volatility remains, analysts suggest that Bitcoin’s ability to hold current levels could determine its next major move. The coming days will be crucial in confirming whether the latest dip was a temporary deviation or the start of a prolonged correction.
