The volatile sphere of cryptocurrencies has experienced a tumultuous 2025 thus far, with bearish tendencies casting a dark cloud over the market. In the wake of this distressing downturn, Bitcoin currently trades at a staggering 25% below its all-time high—a stark contrast to what avid crypto enthusiasts had hoped for.
The State of Play for Bitcoin
CoinGecko’s data offers little comfort, showing Bitcoin’s value has shrunk by an alarming 12% only in the past week. But the bitter pill to swallow is the likelihood of Bitcoin’s downward spiral extending further, per the latest price data.
Crypto analyst Ali Martinez, in a February 28 post on social platform X, offered a sobering perspective on Bitcoin’s fate in the prevailing market conditions. Martinez proposed that Bitcoin’s value could slump to an unsettling $74,700 as a temporary reprieve from the continuous correction.
Martinez’s predication emanates from the critical 50-week moving average’s actions on Bitcoin’s weekly chart. He noted that Bitcoin’s price historically leans on this long-term moving average for support, often leading to a price bounce.
How Will Bitcoin’s Price Fare?
According to the chart shared by Martinez, Bitcoin has undergone hefty corrections in previous cycles, finding solace in the 50-week moving average. The leading cryptocurrency most recently bounced off this moving average in July 2021. It rebounded to a then-all-time high of roughly $62,000 before soaring to a cycle peak of $67,737.
This historical pattern implies that Bitcoin’s price may be exposed to further downward flux, with a predicted support level of about $74,700. If this pivotal threshold remains intact, Bitcoin might rebound to its previous all-time high—or perhaps even higher.
However, if Bitcoin’s price plunges beneath the 50-week moving average, it could trigger a prolonged correction phase. Using past cycles as a reference point, the breaking of the 50W moving average could signal the beginning of a bearish market for Bitcoin.
In the previous cycle, Bitcoin’s price tumbled from about $68,000 to below $17,000—a 75% drop—in just one year, following a breach of the 50-week moving average. However, it’s important to note that the severity of this dip may have been amplified due to the 2022 collapse of Terra Luna and the FTX exchange.
Current Snapshot of Bitcoin’s Price
As of now, Bitcoin hovers just above $85,200, reflecting no significant change in the past day.
FAQs
What is the future outlook for Bitcoin’s price?
Bitcoin’s future performance largely depends on market variables. The leading cryptocurrency could see its value decline further or rally upwards, depending on the market conditions and other influencing factors.
What does the 50-week moving average mean for Bitcoin’s price?
In the past, Bitcoin’s price has often found support at the 50-week moving average, leading to a price bounce. However, a breach of this moving average could trigger a prolonged correction phase.
What was the impact of the Terra Luna and FTX exchange collapse on Bitcoin’s price?
The 2022 collapse of Terra Luna and FTX exchange seemingly played a significant role in amplifying Bitcoin’s price downturn.
