Bitcoin price slips as on-chain data shows 1.57 million BTC held at a loss
Bitcoin struggles to break past the 50-day EMA
Bitcoin price has struggled to break free from the influence of the 50-day EMA this week, as price movements have remained subdued below the technical indicator.
After this led to a brief drop below the critical $95,000 support level on Wednesday, Bitcoin rebounded sharply to $98,200, where resistance at the 50-day EMA halted further gains.
However, the upside rejection has led to renewed bearish pressure, pushing the price lower by 2.3% today to $95,800 in the European session. The technical outlook suggests that Bitcoin’s next move hinges on the strength of the $95,000 support and the behavior of underwater holders at $98,200.
Bitcoin price dynamics (February 2025). Source: TradingView.
The importance of the $98,200 level extends beyond technical resistance, as on-chain data indicates that approximately 1.6 million addresses acquired 1.57 million BTC within this range. Since Bitcoin is currently trading below this level, these investors find themselves in a losing position. Historically, large concentrations of holders at a loss tend to sell aggressively once the price revisits their cost basis, which could introduce strong selling pressure should Bitcoin attempt another rally toward this zone.
Technical indicators flash warning as RSI slips into bearish territory
Technically, Bitcoin’s ability to hold above $95,000 is becoming increasingly uncertain. The repeated tests of this level, combined with the RSI slipping into bearish territory on both daily and 4-hour timeframes, suggest weakness. If Bitcoin fails to hold this level, a deeper decline could be on the horizon.
With the 50-day EMA acting as a barrier on the upside and $95,000 under pressure, Bitcoin is at a critical juncture. A confirmed break below support could open the door for further losses, while a push beyond $98,200 would need strong buying momentum to absorb potential selling from holders breaking even.
Bitcoin's price marks eight days of consolidation after a sharp rejection from the 50-day EMA. Meanwhile, Bitcoin dominance (BTC.D) has surged above 64%, its highest level since March 2021.
