Bitcoin's Volatility: $89K Peak, Demand Drops, $80K Support Test Looms

Bitcoin's price has been volatile in recent days, with the cryptocurrency reaching $89,000 during the early Asian hours on Feb. 26, before retreating. This price action has raised questions about whether Bitcoin could experience another crash in the near future.

Market sentiment has improved slightly, but demand for Bitcoin remains subdued. According to data from market intelligence firm CryptoQuant, Bitcoin's "apparent demand" has dropped significantly, from 279,000 BTC on Dec. 4 to just 10,000 BTC on Feb. 26. This metric turned negative on Feb. 25 for the first time since September 2024, indicating a decline in short-term holder or retail demand. If this trend continues, the price could dip lower, as it did between June and July when Bitcoin dropped a further 22% to $53,000.

However, historical data shows that such periods have historically led to buying opportunities. The current apparent demand level is at levels seen in mid-January 2024 and late October 2025 before Bitcoin price rallied 76% and 73%, respectively, hitting new all-time highs on both occasions.

As Bitcoin finally breached the $90,000 level on Feb. 25, traders are now focused on key areas below this level, which Bitcoin might revisit if the ongoing bearishness persists. The first area of interest remains between its previous range low at $85,000 and the $87,000 support level. If support at $87,000 is lost, Bitcoin could potentially target the liquidity cluster inside this range. An immediate reprieve for the bulls would be a sharp reversal from this range, which will indicate buying interest below $90,000. Otherwise, Bitcoin could potentially test the fair value cap between $80,500 and $85,000, formed during the initial "Trump Pump" rally. The 100-day simple moving average sits within this range, suggesting a strong demand zone just above $80,000.

The daily CME gap remains between $77,000 and $80,000, which is Bitcoin's worst-case scenario, according to