Bitcoin Plunges to Three-Month Low, Whales Accumulate Amidst Market Uncertainty

Bitcoin's recent price plunge to a three-month low of nearly $86,000 has sparked uncertainty and concern among market participants. The cryptocurrency has experienced its steepest quarterly drop since August 2024, with a decline of approximately 20%. This downturn comes after weeks of defending key price levels, ultimately breaking Bitcoin's long-term market structure and signaling the potential for extended bearish momentum.

Technical indicators, such as the Relative Strength Index (RSI), suggest that Bitcoin has entered oversold territory. This reinforces concerns that a swift recovery may not be imminent. With BTC down nearly 10% for the week, market sentiment remains cautious as investors assess the broader implications of this sharp decline.

Despite the downturn, Bitcoin whales have been accumulating aggressively, hinting at underlying confidence in the asset's long-term trajectory. Data from CryptoQuant shows that on February 24, whale accumulation addresses received a whopping 26,430 BTC—wallets typically linked to over-the-counter (OTC) deals and long-term holdings. In stark contrast, short-term holders (STH) have felt the pressure, with addresses holding BTC for less than 155 days moving 27,500 BTC at a loss within the past 24 hours.

Bitcoin's sharp drop also triggered a widespread market sell-off, pushing sentiment into "extreme fear" territory for the first time in five months. While some altcoins have started recovering, Bitcoin remains under bearish pressure, hovering around $88,215.21 after a 1.27% dip in the last 24 hours. The uncertainty in price action reflects traders' cautious stance, as BTC struggles to regain momentum despite a brief relief in broader market conditions.

Moving forward, Bitcoin's ability to break past the $97,927 resistance level could signal a potential bullish reversal. However, if the prevailing bearish momentum persists, a further decline below the critical $86,110 support level remains a strong possibility. The market's next move will largely depend on whether BTC attracts enough buying pressure to shift sentiment or if continued weakness fuels another wave of sell-offs.