- BTC gained 4.67% over the past 24 hours, at press time.
- Bitcoin’s reached a temporary bottom, with some buyers stepping in after rapid selling.
Over the past weeks, Bitcoin [BTC] has experienced extreme volatility. These market fluctuations have sparked discussions among analysts about Bitcoin’s trajectory and its influence on investor behavior.
Glassnode analysts observed that increased volatility allowed sellers to dominate the markets, ultimately leading to capitulation.
Bitcoin’s Cost Basis Distribution suggests…
According to Glassnode, roughly 1/3 of the BTC accumulated at $96k-$97.5k in February 2025 was redistributed as BTC prices plummeted. This resulted from weaker hands trying to cut losses.
Source: Glassnode
However, some addresses from the $96K price bucket accumulated near the $83K local bottom, forming a stair-step pattern.
Despite accumulation attempts, rapid selling prevailed, indicating capitulation. Historically, this precedes local bottoms, followed by price rebounds as investors buy the dip.
Buying activity emerged from various cohorts, but supply between $93K and $83K remains thin. Most investors bought at $84.2K (23K BTC) and $86.9K (25.8K BTC) price levels, mainly long-term investors.
Source: Glassnode
Usually, when investors turn to buying when prices are declining, it creates organic demand boosting the asset for a potential recovery. This trend reversal has been witnessed over the past day as prices have reclaimed a high of $87k.
What BTC charts say
While weak hands turned to sell as prices plummeted, others took this opportunity to accumulate. This behavior is evidenced as retailer traders returned despite the market uncertainty.
Source: Checkonchain
Notably, New Issuance remained above 13K BTC, with crabs (1-10 BTC) spiking to 15K and fish (10-100 BTC) at 5.5K.
This indicates retail traders are buying BTC at current market rates, showcasing confidence and driving strong market demand.
Source: CryptoQuant
AMBCrypto observed Bitcoin’s exchange netflows remaining negative during a volatile week, indicating active accumulation by investors.
Increased exchange outflows reflect rising market confidence, as participants see the dip as a chance to buy before prices surge.
Source: Santiment
As retailer holders have turned to buying while large entities remain indifferent, Bitcoin is becoming more scarce.
Scarcity is vital for BTC recovery prospects, as a low supply while demand from this cohort remains relatively high, will result in higher prices for BTC.
The road ahead for BTC
Retail holders have seen positive change as the market declined, but these speculative sellers react to news and external factors.
Such behavior can increase pressure on Bitcoin. Sustainable gains require sharks and whales to begin accumulating.
If current sentiments persist, short-term gains may push BTC to $90K, bringing profits to the observed cohort.
In the most bullish scenario, BTC could face resistance at $97.5K, where 151K BTC remained unmoved during volatility. If market fluctuations lead to retail selling, BTC may drop to $83K, where $96K bucket addresses previously accumulated.
