Bitcoin (BTC) Drops to Intraday Low of $86,008.23, Marking Its Lowest Point Since November 12

Bitcoin dropped to an intraday low of $86,008.23, marking its lowest point since November 12, before rebounding to the early $88,000s as investors capitalized on the dip.

Top cryptocurrencies minimized some of their losses on Tuesday following the morning downturn, even as the market entered "Extreme Fear" territory.

What Happened: Bitcoin dropped to an intraday low of $86,008.23, marking its lowest point since November 12, before rebounding to the early $88,000s as investors capitalized on the dip. The flagship cryptocurrency is down 13.43% for February, on track for its worst February performance since 2014.

The cryptocurrency is also on track to post a losing month for the third time in the last four.

The second-largest cryptocurrency, Ethereum, similarly rebounded from a significant fall to $2,339 earlier in the day, recovering to above $2,500 by evening. The second-largest cryptocurrency has seen a loss of over 24% for the month.

In the past 24 hours, approximately $1.07 billion was liquidated within the crypto market, with bullish positions accounting for more than $873 million.

Bitcoin's Open Interest decreased by 5.06% in the last 24 hours, with an increase in short positions compared to long positions.

The market has shifted into the "Extreme Fear" zone, according to the Crypto Fear and Greed Index, revealing a high level of concern among investors.

Top Performers (24-Hours)

The total global cryptocurrency market capitalization is at $2.91 trillion, having decreased by 2.49% in the last 24 hours.

Among the top performers in the last 24 hours are Anyswap with a 20.48% surge and Shibainu with a 16.42% rise.

On the other hand, Monero has seen a setback of 10.12% in the last 24 hours.

Blue-chip stocks fell for the second consecutive day of the week as the S&P 500 declined by 0.47% and closed at 5,955.25, while the tech-centric Nasdaq Composite fell by 1.35%, finishing at 19,026.39. In contrast, the Dow Jones Industrial Average provided a glimmer of hope, increasing by 0.37% to close at 43,621.16.

The tech sector's downturn was chiefly driven by Tesla Inc. TSLA, which plummeted by 8.39% during the trading session. Stocks associated with Bitcoin, like Strategy Inc. MSTR, fell over 11%.

The market sentiment was shaky as President Donald Trump reiterated earlier this week that tariffs on imports from Canada and Mexico would be implemented as planned, fueling concerns of escalating trade tensions.

Investors are now turning their attention to the earnings report from semiconductor leader Nvidia Corp. NVDA, which is set to be announced on Wednesday after the market closes.

Further Reading: Top Cryptocurrency Scanners

What Analysts Are Saying: Arthur Azizov, CEO of the cryptocurrency payment platform B2BINPAY, expressed to Benzinga that Bitcoin is currently situated in a crucial reversal zone.

"Should we close below $89,233 and begin trading under this threshold, the outlook may diminish, as there is potential for continued decline. But if Bitcoin sees increased buying activity throughout the day, possibly just liquidating and retaining another wick, upward momentum may follow," Azizov anticipated.

Renowned cryptocurrency strategist and trader Ali Martinez observed that Bitcoin has exited its range-bound price behavior that has lasted since November. A downward breakout may propel a price correction towards $80,000.

"As a result, it might be best to avoid considering buying the dip yet," Martinez advised investors.

Image credit: Igor Faun on Shutterstock