 ▲ Bitcoin, Dollar ©CoinReaders |
As Bitcoin (BTC) faces the risk of recording its worst monthly decline in more than four years since the Terra-Luna collapse, an analysis suggesting that the current severe crash may actually signal a perfect bottom and a powerful buying opportunity is drawing significant market attention.
According to investment media outlet Benzinga on February 27 (local time), Bitcoin is on track for its steepest monthly drop since the Terra collapse in June 2022. It is also projected to mark five consecutive months of losses, the longest streak since the 2018 initial coin offering (ICO) bubble burst. The sell-off accelerated immediately after U.S. President Donald Trump announced plans to raise global tariffs to 15%. As macroeconomic fears peaked, capital flowed en masse into traditional safe-haven assets, undermining Bitcoin’s reputation as “digital gold.”
Despite the grim outlook, analyst James Check argues that Bitcoin is displaying textbook bottoming signals. He explained that all mean-reversion models, from technical indicators to on-chain data, indicate entry into a typical bottoming zone that follows a price capitulation. He emphasized that unless Bitcoin is truly dead, investors should ignore bearish pessimism and begin quietly accumulating through dollar-cost averaging (DCA), calling it an ideal entry point.
Currently, Bitcoin is trading just about 2% above the panic low range of $61,000 to $62,000. The Supertrend indicator at $65,992 and the Parabolic SAR at $65,533 converge to form a strong double resistance zone between $65,500 and $66,000, highlighting intense selling pressure in the market. Even the former key support range of $64,500 to $65,500 has now turned into a solid resistance level.
For a trend reversal, a clear recovery signal is needed, with multiple four-hour candle closes above $66,000. Conversely, if the $61,000 support level breaks, panic selling could drive prices down to between $58,000 and $60,000, or in the worst-case scenario, as low as $55,000. Experts note that Bitcoin is approaching the 200-week moving average at $58,503, adding that whether this support—successfully defended in early February—can hold again will be a critical turning point for future price stabilization.
Disclaimer: This article is for investment reference purposes only and we are not responsible for any investment losses resulting from its use. The content should be interpreted for informational purposes only.