Is BTC Price Ready to Bounce Back After Bearish February?

Bears have been dominant in February for BTC price, resulting in pain for holders especially those that purchased it after mid-November.

The bearish month is now a wrap but, will March bring bullish tidings, or extend the same momentum observed in February?

To recap, Bitcoin tanked by roughly 23% from its highest to lowest price point in February.

This bearish performance saw BTC drop to price level last seen in the second week of November 2024.

This latest bearish outcome saw price dip as low as $78,197, but it has since bounced back to its $85,040 press time price tag.

Also worth noting is that this recent dip pushed into the RSI’s oversold territory for the first time since early August 2024.

Could this latest dip be the ideal buy-back zone? The last time that price was oversold, Bitcoin bounced back significantly.

Is BTC Price slated for more recovery in March?

One of the biggest characteristics of a major recovery is strong whale and institutional involvement.

ETF flows were in the green by roughly $94.3 million on Friday. This is the first time that ETFs have bought since mid-February.

Interestingly, recent market data reveals that there was a noteworthy surge in whale activity.

Whale inflows clocked in at 11,590 BTC on 28 February, while outflows were notably lower at 3,080 BTC.

A significant gap indicating that whales contributed to the recent bounce back.

If the same trend continues for the next few days, then it could provide enough momentum for Bitcoin to possibly recover above $90,000.

The derivatives segment also demonstrated renewed interest. Market data demonstrated a surge in margin long positions in the last 48 hours.

A sign that derivatives traders anticipate more upside. These observations suggest that bullish optimism is making a comeback especially after the massive discount.

Even Bitcoin’s fear and greed index was up from 16 to 20 in the last 48 hours, signaling bullish expectations at the start of March.

However, the latest downside had the market spoofed and investors are still on the edge about jumping back in.

A recent CryptoQuant analysis revealed that short term holders are selling Bitcoin at a loss. It also noted that open interest was down to a 6-month low.

Why Politics and Economic Data will Determine Bitcoin’s Next Move

Perhaps the answer to whether Bitcoin bulls are ready to make a strong comeback in March, lies in the same reasons for its downside.

BTC’s bearish performance is consistent with the latest global economic woes.

For instance, the tariff wars and pesky inflation have had a negative impact on investor sentiment.

As a consequence, investors have been selling their crypto holdings. President Trump recently confirmed that new tariffs will take effect in the first week of March.

This may have contributed to the latest downside. The risk in this situation is that these political-economic issues may continue to dampen investor sentiment.

If this trend continues, then Bitcoin bulls could have a challenging time trying to make a comeback.