TLDR
Bitcoin experienced high volatility, reaching $109,114 before dropping to around $78,248
BTC currently trading at $87,070, showing signs of recovery with a 4% uptick
Analysts predict Bitcoin will remain between $80K-$100K for next 2-3 months
Strong selling pressure nullified gains from Trump’s crypto reserve announcement
Market sentiment currently shows “Extreme Fear” according to the Crypto Fear & Greed Index
The world’s largest cryptocurrency, Bitcoin (BTC), has been on a rollercoaster ride since the beginning of 2025. After reaching an impressive high of $109,114.88 in early 2025, Bitcoin shocked the market by tumbling to a low of $78,248.92. This dramatic swing has left many investors wondering what to expect next.
Bitcoin has shown some recovery signs in recent days. The cryptocurrency managed to climb from $81,529.24 to $88,911.27 in just 24 hours, marking a 4% increase. At the time of writing, BTC is trading at $87,070.61, which represents a modest recovery from its recent lows.
February started strong for Bitcoin, with the price at $102,514.17. However, the asset quickly dropped to $78,248.92, causing widespread concern in the crypto community. This sudden downfall came as a shock to many investors who had been enjoying the bullish trend since the start of the year.
According to an analyst at CryptoQuant, Bitcoin is entering the third corrective phase of its current bull cycle, which reportedly began in early 2023. During this phase, Bitcoin is expected to trade between $80,000 and $100,000 for the next two to three months. This period will likely serve as a time of consolidation before potential future gains.
These correction phases are common in bull markets and often provide stability and renewed momentum for the market. The analyst from CryptoQuant noted,
“If history repeats itself, the current correction could persist for another 2 to 3 months, with BTC ranging between $80K and $100K.”
A decisive breakout above $100,000 could mark the end of this corrective phase, potentially paving the way for a rally toward $130,000. However, Bitcoin may face strong resistance when attempting to reclaim the $94,000 price level, according to Bitfinex analysts in their March 3 market report.
The recent volatility followed US President Donald Trump’s March 1 announcement pledging a crypto reserve. This news initially caused Bitcoin to surge 12% from $85,000 to $95,000. However, strong selling pressure in the Bitcoin spot market has already erased most of those gains.
Market Analysis
With Bitcoin currently trading at $87,190, a move back to $94,000 would represent an almost 8% increase. This move might prove challenging in the current market conditions, as many analysts remain uncertain about Bitcoin’s short-term price direction.
Crypto trader Rekt Capital suggested that while “history suggests the bottom may very well be in on this downside deviation,” further price drops remain possible. Although Bitcoin may see some form of price stability around the range low of $93,500 in the coming days, it doesn’t guarantee that the price won’t fall below this level again.
#BTC
Bitcoin performed a remarkable technical feat to perform such an outsized downside deviation but still Weekly Close inside its ReAccumulation range
In fact, history suggests the bottom may very well be in on this downside deviation
Going forward, Bitcoin will try to… https://t.co/r5reRJ0HFy pic.twitter.com/VdgglAm2O3
— Rekt Capital (@rektcapital) March 3, 2025
On a more positive note, crypto analyst Axel Adler pointed out that it was a “good sign” that buyers “bought up” Bitcoin when it recently touched $81,000. This buying action could indicate underlying support at these levels.
Meanwhile, MN Trading founder Michaël van de Poppe advised caution, stating, “Honestly, I think we’ll need to wait until this week is over as there’s a lot of macro-economic data & events.” The upcoming US Consumer Price Index (CPI) for February, set for release on March 12, and the Federal Reserve interest rate decision on March 19, could influence market movements.
The crypto market’s sentiment currently leans heavily toward fear. The Crypto Fear & Greed Index shows a score of 20 in the “Extreme Fear” category, where it has remained since February 25. This indicates widespread uncertainty and concern among market participants.
Master Ventures founder Kyle Chasse recently noted that Bitcoin’s price will continue to experience volatility until genuine buyers start entering the market rather than traders seeking arbitrage opportunities. This suggests that more stable, long-term investment is needed for Bitcoin to regain its upward momentum.
Despite the current challenges, many in the crypto community remain optimistic about Bitcoin’s long-term prospects. The potential rally toward $130,000 mentioned by the CryptoQuant analyst suggests that there could be substantial upside once Bitcoin breaks out of its current consolidation phase.
For now, investors should prepare for a potential period of sideways trading as Bitcoin works through this corrective phase. The cryptocurrency may continue to fluctuate between $80,000 and $100,000 before making its next major move.
Bitcoin has shown remarkable resilience throughout its history, bouncing back from numerous downturns to reach new heights. While the current market conditions may test the patience of investors, history suggests that these consolidation periods often precede substantial rallies.
Bitcoin is currently in a corrective phase expected to last 2-3 months with trading confined between $80,000 and $100,000 before potentially rallying toward $130,000.
