Main Points:
- February Market Decline: Bitcoin’s price has experienced a significant decline in February, dropping approximately 20% and ending a five-month streak of consecutive gains. This marks the first negative month in recent times, with the monthly candlestick closing below the moving average, indicating a bearish trend.
- Weekly Weakness: The weekly chart also shows a bearish pattern, with a 12% decline this week, leading to a fourth consecutive bearish week. The appreciation of the Japanese yen against the US dollar has impacted Bitcoin’s price in yen terms.
- Price Correction: Currently trading around ¥12,600,000 (＄83,757), Bitcoin has decreased by 25% from its January peak of ¥17,100,000 (＄113,670). The daily chart indicates difficulty in surpassing the 14-day Exponential Moving Average (EMA), with a downward trend in recent days.
- Long Position Liquidations: The significant price drop has led to over $1 billion in long position liquidations, the largest since August 2024. This suggests a potential market bottom, but caution is advised.
- Hashrate Dynamics: Despite the price decline, Bitcoin’s hashrate remains high, with the 30-day moving average above the 60-day moving average, indicating continued mining activity. A decrease in hashrate could lead to increased selling pressure from miners.
In recent months, Bitcoin has experienced significant market fluctuations, with February 2025 marking a notable downturn. This article examines the recent market trends, including price movements, mining dynamics, and potential future scenarios for Bitcoin.
Market Decline in February:
February 2025 has been a challenging month for Bitcoin investors. The cryptocurrency’s price has declined by approximately 20%, ending a five-month streak of consecutive gains. This marks the first negative month in recent times, with the monthly candlestick closing below the moving average, indicating a bearish trend. While it is premature to declare the end of the upward trend, this month’s performance warrants attention.
Weekly Weakness:
The bearish trend is also evident on the weekly chart. This week, Bitcoin has declined by about 12%, leading to a fourth consecutive bearish week. The appreciation of the Japanese yen against the US dollar has impacted Bitcoin’s price in yen terms. The weekly chart shows the price trading significantly below the 8-week moving average of ¥1,435,000 (＄95,390), indicating a shift from a strong to a bearish technical outlook.
Price Correction:
Currently trading around ¥12,600,000 (＄83,757), Bitcoin has decreased by 25% from its January peak of ¥17,100,000 (＄113,670). The daily chart indicates difficulty in surpassing the 14-day Exponential Moving Average (EMA), with a downward trend in recent days. The support line near ¥1,430,000 (＄95,057), which held in previous months, has been breached, with the price briefly falling to ¥1,226,000 (＄8,150), the lowest since November 2024. The Relative Strength Index (RSI) has fallen below 30, a level not seen since August 2024, suggesting that the market may be oversold in the short term.
Long Position Liquidations:
The significant price drop has led to over $1 billion in long position liquidations, the largest since August 2024. This indicates that investors are closing their positions amid the downturn. In August 2024, a similar liquidation event was followed by a market rebound. However, it remains to be seen whether the current situation will lead to a similar recovery.
Hashrate Dynamics:
Despite the price decline, Bitcoin’s hashrate remains high. The 30-day moving average is above the 60-day moving average, indicating continued mining activity. Miners are maintaining a bullish stance, continuing to mine Bitcoin despite the price drop. A decrease in hashrate could lead to increased selling pressure from miners, which would be a concern for the market.
Recent Market Developments:
In late February 2025, Bitcoin’s price experienced a sharp decline, falling below $90,000 for the first time in a month. This drop was attributed to risk-averse behavior among investors. Analysts have noted that on-chain indicators suggest that the market may have reached a bottom, with significant losses incurred by short-term holders. The cryptocurrency sentiment index has also fallen to its lowest level since August 2024, indicating widespread bearish sentiment.
Mining Industry Insights:
The mining industry has also been affected by recent market conditions. In February 2025, the hashrate of publicly listed Bitcoin mining companies in the United States accounted for approximately 29% of the global network, nearly doubling from the previous year. However, the profitability of mining has decreased by 13% since the end of January 2025, posing challenges for miners.
Future outlook:
The recent downturn in Bitcoin’s market presents both challenges and opportunities for investors and industry participants. While the market has experienced significant declines, on-chain indicators suggest that a potential bottom may have been reached. The mining industry continues to operate at high hashrate levels, indicating confidence in the long-term prospects of Bitcoin. Investors should remain vigilant, monitoring market trends and on-chain data to navigate the evolving landscape of the cryptocurrency market.
