Bitcoin’s The plunge on February 5 will go down as one of the most historic sell-offs on record. Here are the key statistics that help define the event and indicate the potential for further declines.
Bitcoin prices opened the day near $73,000 before falling to lows around $62,000, a drop (or candle, as some market participants call it) of more than $10,000. The day’s 14% drop was the largest one-day drop since the collapse of cryptocurrency exchange FTX in November 2022.
The fear and greed index fell into single digits, a level that has only been seen a few times in Bitcoin’s 17-year history. Meanwhile, Bitcoin ranks third on the RSI, a measure of the speed and variability of price movements.
supply in profit and loss
The loss of circulating supply meant that the number of tokens that ended up trading at prices above the market surged to nearly 10 million BTC. This is the fourth highest level ever, matching the 2015, 2019 and 2022 bear market bottoms.
Another indicator is that the circulating supply reached 4.6 million BTC with long-term holders at a loss. At the previous bear market low, this number exceeded 5 million Bitcoin, indicating that the metric is approaching but not yet fully matching previous extreme values.
Profit supply and loss supply nearly converge, a situation that historically coincides 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 whether Bitcoin has hit a bottom, history suggests it may be close, especially now that Bitcoin has recovered to $68,000.
Nonetheless, market participants may still be waiting for Bitcoin to test its 200-week moving average, currently near $58,011.
