Bitcoin’s 6.50% price drop, But data shows bulls are buying
- Exchanges have witnessed an outflow of $677 million worth of BTC.
- Data shows that 67% of crypto traders’ accounts were in long positions.
In the past 24 hours, the overall cryptocurrency sentiment has completely changed due to a massive price drop and billions of dollars in liquidations.
Bitcoin [BTC] has also been significantly affected, experiencing a sharp price decline–an unusual circumstance for the market.
The reason behind Bitcoin’s fall
The potential reason for this market uncertainty and massive price decline across cryptocurrencies is the trade war sparked by U.S. President Donald Trump.
On the 2nd of February, Trump posted on X (formerly Twitter), announcing that he has implemented tariffs on Mexico, Canada, and China, causing the overall market to turn red.
Bullish sentiment among traders and investors
Regardless, traders and investors appeared bullish on BTC as they continued to accumulate and bet on longs, per AMBCrypto’s look at on-chain analytics from Coinglass and Hyblock.
Coinglass’s inflow/outflow data revealed that since the beginning of the price drop, exchanges have witnessed an outflow of a substantial $677 million worth of BTC.
This significant outflow in the current struggling market suggests potential accumulation by whales, investors, and long-term holders, which could create buying pressure and drive a further upside rally.
Source: Coinglass
Meanwhile, Hyblock recently revealed that as BTC’s price began trending downward over the past 24 hours, global traders have increased their long exposure.
67% of accounts were taking long positions, indicating a bullish outlook for the king coin.
Source: Hyblock
When combining these on-chain metrics, BTC appears to flash an ideal buying opportunity.
Bitcoin price action and key levels
BTC has impressively respected the crucial support level of $91,500. However, this is the eighth time the asset has tested this level, which appears to be weakening its strength.
Based on historical momentum, multiple retests of support or resistance could result in either a breakdown or a breakout.
Source: TradingView
Current price action and market sentiment suggest that BTC will remain bullish as long as it trades above the $92,500 level.
Read Bitcoin’s [BTC] Price Prediction 2025–2026
However, if the asset fails to hold this level and closes a daily candle below $91,000, there is a strong possibility of a 20% decline, potentially reaching the $74,000 level.
On the positive side, despite heavy price fluctuations, BTC has maintained itself above the 200 Exponential Moving Average (EMA), which suggests it is in an uptrend.