Key Points
- Bitcoin’s price is signaling a major selloff below $90K, indicating the possibility of whales capitulation.
- Bitcoin’s demand from whale investors has significantly declined in recent weeks.
Bitcoin’s price has dipped below a critical support range between $94K and $95.7K for the second time this month. This indicates that sellers are gaining more ground. The leading cryptocurrency has dropped more than 2% since the start of the week, trading at about $95,746 on Wednesday, February 19, during the mid-London session.
Since the second term of US President Donald Trump, Bitcoin’s price has led the wider crypto market in bearish sentiment. The BTC price has been forming a potential reversal pattern in the weekly time frame, characterized by a double top around $108K and a bearish divergence of the weekly Relative Strength Index (RSI).
Bitcoin’s Major Support Range
According to market data from Cryptoquant, Bitcoin’s price is nearing a significant support range between $91K and $95K. This is where the 111-day moving average, SMA 111D at $95K, converges with the price at which short-term holders (STH) have realized their profits or losses, STH Realized Price at $91K.
CryptoQuant’s market data analysis also reveals that Bitcoin’s price has yet to breach the realized price for mining companies of about $57K at the time of this writing. Moreover, historical bear markets have begun after BTC price consistently closed below the realized price for mining firms.
Bitcoin Whales’ Demand Decline
The overall demand for Bitcoin by whale investors has significantly decreased in the past few weeks compared to the second half of 2024. According to market data analysis from CoinGlass, the overall supply of Bitcoin on centralized exchanges (CEXes) has increased by nearly 54k in the last four weeks to hover about 2.24 million.
The increase in BTC on CEXes is largely impacted by the notable cash outflows from the US spot Bitcoin ETFs. On Tuesday, the US spot BTC ETF recorded a net cash outflow of about $60 million.
However, BlackRock’s IBIT has continued to accumulate in small quantities, recording a net cash inflow of about $68 million on Tuesday. Meanwhile, Strategy (NASDAQ: MSTR) is expected to continue with its BTC accumulation after announcing a $2 billion offering plan.
Bitcoin’s Fundamental Aspects
The Bitcoin network has grown into a robust ecosystem backed by institutional investors and clearer regulatory frameworks in 2025. The United States and European countries have led in the mainstream adoption of Bitcoin through institutional investors and positive clear regulatory frameworks.
More than 20 states in the United States have already proposed the implementation of a strategic Bitcoin reserve led by Texas, Florida, Massachusetts, and Wyoming, among others. The notable success of El Salvador in its Bitcoin strategy has convinced more central banks around the world to consider Bitcoin as digital gold.
Over the past few years, the BTC hashrate has continued to grow exponentially to hover at about 792 Ehash/s, up around 1.1 percent in the past 24 hours. The involvement of BTC mining by nation-states and more institutional investors has strengthened the Bitcoin network.
