Bitcoin (BTC) Price Drops Below $90K, Experiencing Its Biggest Price Drop

Bitcoin experienced its biggest price drop in recent days, finally breaking out of the price compression that had been building since early February.

Bitcoin (BTC) price tumbled on Wednesday, marking its biggest single-day price drop in recent times. The recent price compression, which had been building since early February, finally broke as BTC lost weekly support at the $90K level.

This drop has also fueled speculation about a potential bear market, with many investors growing increasingly concerned.

CryptoQuant analyst Axel Adler shared some interesting on-chain data, showing that in the last 24 hours, 79.3K BTC were sold at a loss on exchanges. This is a significant amount, especially considering that it marks the largest Bitcoin sell-off of 2025.

This on-chain data could indicate that either a market bottom is forming as weak hands capitulate, or it marks the start of a deeper bearish phase.

Bitcoin Price Drops Below Mid-November Highs

Bitcoin is currently trading below its mid-November highs, which were set post-election when President Trump’s victory was announced. Since then, BTC has been on a steady decline, and now, fear has taken over the market as prices keep retracing.

Analysts and traders remain cautious as BTC attempts to reclaim key levels and reverse the bearish trend that has defined price action in recent weeks. So far, Bitcoin has struggled to find strong support, making investors anxious about whether further declines are coming.

According to Adler’s data, the 79.3K BTC sold at a loss on exchanges in the last 24 hours marks the largest Bitcoin sell-off of 2025, highlighting the level of panic among short-term holders.

Historically, sell-offs of this magnitude can signal one of two things: either a market bottom is forming as weak hands capitulate, or it marks the start of a deeper bearish phase.

The next few trading sessions will be crucial as Bitcoin fights to regain key support levels. If BTC fails to recover soon, the market may be in for a prolonged bearish trend.

BTC Price Drops Below Key Demand Levels

Bitcoin is trading at $88,400 today after enduring days of massive selling pressure, pushing the price below key demand levels.

Recently, BTC tagged the 200-day exponential moving average (EMA), a critical indicator of long-term market strength. This level typically acts as a strong support zone, but if BTC fails to hold, it could signal further downside.

Now, bulls face a crucial test—they must reclaim the $90K level and push above $95K to confirm a recovery rally. Breaking above these levels would shift the momentum back in favor of the bulls and could trigger a renewed push toward $100K.

However, if BTC loses its current support zone, it could lead to a deeper correction, potentially sending the price into lower demand areas. Investors and analysts are closely watching whether Bitcoin can stabilize at these levels or if another wave of selling pressure will drive prices even lower.

With market sentiment leaning bearish, Bitcoin needs a strong bounce soon to avoid further downside risk. The coming days will be critical, as a failure to hold the 200-day EMA could confirm a more extended bearish phase for BTC.