Bitcoin (BTC) went past $85,000 as it recovered from a correction that took the price to a low of $78,457 on February 28. The flagship cryptocurrency is up nearly 1% over the past 24 hours but is struggling to build momentum and retake key levels. Analysts believe BTC risks a deeper correction to $72,000 as market sentiment hits a three-year low. The decline saw BTC lose over 11% over the past well. The last time investor sentiment hit similar levels was a month after BTC dropped to $17,500 in 2022. Spot Bitcoin ETFs Snap Outflow Streak Spot Bitcoin ETFs finally broke their outflow streak, registering $94.3 million in total inflows on February 28, as crypto’s worst month in three years ended. The inflows registered on February 28 ended an eight-day streak of outflows, during which investors pulled over $3.2 billion as the Bitcoin price collapsed below $80,000. BlackRock’s IBIT, the largest spot Bitcoin ETF was an exception, registering $244 million in outflows on Friday. Meanwhile, Fidelity’s FBTC saw $174 million in inflows, while the ARK23Shares Bitcoin ETF registered inflows of around $193 million, according to data from Farside. The inflows came as the crypto market showed signs of recovery after BTC plunged to $78,457. The flagship cryptocurrency has recovered to reclaim $80,000 and is trading around $85,700 at the time of writing. However, BTC has still been down nearly 12% over the past week. Meanwhile, spot Ethereum ETFs have continued to see significant outflows, with over $419 pulled from the funds on February 28. Changpeng Zhao Shares Advice For Investors Former Binance CEO Changpeng Zhao has offered his perspective on recent market volatility and price action. In a post on X, Zhao addressed concerns about the recent market dip, stating that such fluctuations are a natural aspect of free markets. He also advised investors anxious about price swings to reassess their investment size. “Dips are a part of free markets … If you are stressed about it, you probably should reduce your investment size. (That is if you view crypto as an investment).” Zhao clarified he was not giving financial advice and reflected on his shift in perspective, adding, “For me, it’s a worldview shift. I exited the old world 11 years ago.” Zhao also emphasized the importance of a balanced approach and personal responsibility for long-term success in the crypto space. Zhao added, “If you got shaken out during the dip, reduce your size to a level you can handle. Mental stability beats all market volatility.” Bitcoin (BTC) Price Analysis Bitcoin (BTC) could see a correction to $72,000 if investor sentiment does not pick up, limiting the prospect of an immediate recovery. Investor sentiment has dropped to levels last seen in 2022. BTC fell to a three-month low of $78,457 on February 28, down nearly 28% from its all-time high of $109,000 on January 20. According to Iliya Kalchev, dispatch analyst at digital asset investment platform Nexo, BTC could experience a significantly deeper correction towards $70,000 as the market repositions. However, the analyst remains confident a significant drop below $75,000 remains less likely. “While there might be a temporary backtrack as the market fills in the gaps left during the rapid climb, Bitcoin is more likely to establish firm support in the $72,000 to $80,000 range. This support could provide a foundation for a more sustainable recovery, reducing the likelihood of a deeper retracement.” Other analysts have also predicted a bottom near $70,000 before the next stage of the rally sets in. The first warning of a correction to $70,000 came from Raoul Pal, founder and CEO of Global Macro Investor. Pal had predicted BTC would reach a local top above $110,000 in January before correcting. Investor sentiment has also dropped to levels not seen since 2022. The last time it fell to these levels was in 2022 after BTC declined to $17,500. Bitcoin (BTC) lost key levels this week as bears tightened their grip on the market. Market sentiment has registered a drop thanks to macroeconomic factors, concerns around inflation, the Bybit hack, and fears of a trade war. As a result, BTC started the week in the red after registering a marginal drop on Monday and settling at $96,084. Bearish sentiment intensified on Monday as BTC dropped nearly 5% to go below $95,000 and settle at $91,622. Sellers retained control on Tuesday as BTC fell below $90,000 on its way to a low of $85,985. The price recovered from this level but could not reclaim $90,000, ultimately settling at $88,654. Bearish sentiment intensified on Wednesday as the price fell to a low of $82,081 before settling at $84,129 after a decline of over 5%. Source: TradingView Despite the overwhelming bearish sentiment, BTC recovered on Thursday, reaching an intraday high of $87,045. However, it could not stay at this level and settled at $84,657, ultimately registering a marginal increase. The price collapsed on Friday as BTC plunged below the 200-day SMA and key support levels to an intraday low of $78,179. Buyers stepped in at this level, allowing the price to recover. As a result, BTC reclaimed $80,000 and ultimately settled at $84,362 after a marginal decline. The price registered a recovery on Saturday after the White House announced a crypto summit scheduled for March 7. BTC rose just over 2% following the news and settled at $86,182. The current session sees the price marginally down as buyers and sellers struggle to establish control. Despite BTC’s recovery on Saturday, buyers are struggling to build momentum, with sellers in control of the ongoing session. If sellers retain control, BTC could drop back to $80,000. A deeper correction could see the price drop to $72,000. On the other hand, buyers will look to establish control and push BTC towards $90,000. The RSI and MACD are bearish, indicating a further downtrend for BTC . Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
