Bitcoin Plunges Below $88,000: What Is Going On?

Bitcoin BTC/USD has tumbled below $88,000, levels not seen since mid-November 2024, as market sentiment reacts to Donald Trump's tariff announcement.

Trader Notes: Crypto chart analyst Ali Martinez warns that BTC is breaking below a parallel channel and could slide to $81,000 unless it reclaims $92,500.

Bluntz Capital notes that Bitcoin is at a key level, where a bounce is possible after both sides of the range have been tested. Failure to hold this level could result in a more severe drop.

if $btc is gonna bounce it should be from right here now that both sides of the range have been taken and if not, well better to not talk about that. pic.twitter.com/K0QDrF0ZWs

— Bluntz (@Bluntz_Capital) February 25, 2025

Veteran trader DonAlt sees Bitcoin's price action as normal market behavior and suggests that the safest approach is to wait for a reclaim of $100,000 before making major moves.

Another veteran trader, Adam, says buying near $85,000 (200 EMA level) makes sense, but warns against blindly bidding at current levels. Structuring the trade is tricky since downside squeezes can go much deeper.

Also Read: Grok 3 Predicts Bitcoin Dominance In 2025, Projects $180,000 Price Target

What's Next: Crypto trader Nic sees Bitcoin is at a critical inflection point, with tariffs triggering a risk-off move that led to BTC liquidations surging to $632.7 million in the past 24 hours.

Coinglass data shows $602.1 million in long liquidations, the highest level since Dec. 5, 2024.

Nic also notes that institutional ETF buyers may have been unwinding cash-and-carry trades with CME futures, further pressuring BTC. He added that the hopes for a strategic reserve have faded, leaving Bitcoin without a clear bullish narrative.

While the trader predicts $70,000 as the next key support level, if the tariffs are reversed Bitcoin could see a relief rally back above prior support.

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