Bitcoin The collapse of February 5 will go down in history as one of the most historic sell-offs ever recorded. Below are the key statistics that help define the event and indicate how much further it can fall.
The price of bitcoin started the day near $73,000 and fell to a low around $62,000, a dip (or, as some market participants call it, a candle) of more than $10,000. The day’s 14% drop was the biggest single-day drop since November 2022, during the implosion of the FTX crypto exchange.
The fear and greed index fell to single digits, a level seen only a few times in bitcoin’s 17-year history. At the same time, bitcoin was the third most oversold in its history on the RSI, an indicator that measures the speed and change of price movements.
Profit and loss offer
The losing circulating supply, that is, the number of coins that last moved at prices above the market price, increased to almost 10 million BTC. This is the fourth highest level in history, comparable to the bear market lows of 2015, 2019 and 2022.
Another measure, the amount of long-term holders’ circulating supply that is lost, reached 4.6 million BTC. At previous bear market lows, the figure surpassed 5 million BTC, suggesting that this metric is approaching previous extremes, but has not yet completely equalized.
The bid on gains and the bid on losses have nearly converged, a condition that has historically aligned with the bottom of major market declines. Currently, approximately 10 million BTC are in profit and 10 million BTC are in loss.
While no one knows for sure if bitcoin has bottomed, history suggests it is probably close, especially now that bitcoin is already recovering towards $68,000.
Still, market participants may be waiting for Bitcoin to test its 200-week moving average, currently near $58,011.
