Bitcoin, Ethereum, XRP, Dogecoin See Blood-Red Tuesday As Traders Expect 'Period Of Consolidation Before Next Leg Down'

The cryptocurrency market plunged on Tuesday, with Bitcoin BTC/USD slipping below $88,000 and the global market cap retreating below the $3 trillion mark.

Cryptocurrency	Price	Gains +/-
Bitcoin BTC/USD	$87,679.28	-6.9%
Ethereum ETH/USD	$2,463.78	-7.2%
Solana SOL/USD	$143.94	-4.9%
XRP XRP/USD	$2.25	-6.7%
Dogecoin DOGE/USD	$0.2079	-6.8%
Shiba Inu SHIB/USD	$0.00001396	-2.3%

Notable Statistics:

• IntoTheBlock data shows large transaction volume increasing by 52% and daily active addresses growing by 38.5%. Transactions greater than $100,000 are up from 6,703 to 10.858 in a single day. Exchanges netflows are up by 183.7%.
• Coinglass data reports 387,391 traders were liquidated in the past 24 hours for $1.60 billion. Long liquidations of $933.4 million are at the highest level since Feb.3.
• Crypto chart analyst Ali Martinez highlighted that the number of new Bitcoin addresses created per day has dropped to 240,534, the lowest level since July 2024.

Notable Developments:

• SEC Drops Another Case: Uniswap Investigation Concludes Without Enforcement
• Bitcoin Plunges Below $88,000: What Is Going On?
• Citadel Securities Moves Into Crypto Market-Making Following Trump’s Crypto-Friendly Regulation Push (CORRECTED)
• Bitcoin-Friendly Vivek Ramaswamy Announces Bid For Ohio Governor, Trump Offers Total Endorsement: ‘Young, Strong, And Smart’
• ‘Liquidity Is Disappearing’: Bitcoin’s Downturn Spells Doom For Altcoins, Analyst Warns

Top Gainers:

Cryptocurrency	Price	Gains +/-
Story IP/USD	$5.89	+26.2%
Celestia TIA/USD	$3.66	+9.1%
Quant QNT/USD	$96.41	+8.9%

Trader Notes: Ali Martinez compares Bitcoin's current price action to the 2021 market top, warning that if the pattern holds, BTC could enter a consolidation phase before another leg down.

#Bitcoin $BTC is showing similarities to the 2021 market top. If this pattern holds, we could see a period of consolidation at current levels before the next leg down! pic.twitter.com/lKV0aJIpwB

— Ali (@ali_charts) February 25, 2025

Michael van de Poppe points out Bitcoin's recent dip, emphasizing that a close above $87,000 with strong altcoin performance could signal a market rebound. He notes that peak negative sentiment often aligns with market bottoms.

Roman Trading views this week's Bitcoin close as crucial, warning that a break below key support could send BTC towards $70,000, while a range between $89,000-$78,000 remains possible.

$BTC 1W

I think some of you need to realize how important this week's close will be.

A close below support and the next area of interest is in the 70ks or at least starting a new range between 89-78k.

Pay. Attention.#bitcoin #cryptocurrency pic.twitter.com/ECKCGBqmNY

— Roman (@Roman_Trading) February 25, 2025

Read Next: 

• Bitcoin, Ethereum, XRP Shed Billions In 9% Correction: 3 Factors Driving The Downturn

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