20 % Bitcoin Correction: Market Analysis by Michaël Van De Poppe | Flash news details

On February 26, 2025, Bitcoin witnessed a large correction by 20 %, decreasing from $ 65,000 to $ 52,000 during a 24-hour period, according to Coinmarkcap (Source: Coinmarketcap, 2025-02-26). This sharp decrease led to a widespread panic among investors, explained by MichaëL Van De Poppe on Twitter (Source: Twitter, Cryptomichnl, 2025-02-26). The correction has been run through a set of factors including organizational news from the Supreme Education Council and a surprise increase in sales orders from senior holders, according to the data from Glassnode (Source: Glassnode, 2025-02-26). During this period, trading volumes rose, with Bitcoin size of $ 45 billion on the main stock exchanges such as Binance and Coinbase (Source: CryptocCCOSPARE, 2025-02-26). In addition, the scales on the chain showed a rise in transaction fees, as the average fee increased to $ 30 per transaction, indicating an increase in network activity (Source: Blockchain.com, 2025-02-26). This event has not been isolated to Bitcoin. ETHEREUM also witnessed a 15 % decrease from $ 3500 to $ 2,975, and followed other major encrypted currencies such as Solana and Cardano, followed by 18 % and 12 % decreases, respectively (Source: Coingecko, 2025-02-26). The market’s feeling of fear, with the decrease in the Crypto Fear & Greed index, has turned to 22, indicating extreme fear among investors (Source: Alternative.me, 2025-02-26).

The trading effects of this correction were multi -side. First, the increasing fluctuations provided opportunities for traders in the short term to take advantage of price fluctuations. For example, the BTC/USD pair has seen a great short benefit, with the financing rate on permanent future contracts that amount to 0.05 % on Bitmex (Source: Bitmex, 2025-02-26). On the contrary, the long -term investors have been advised to keep steadily, as historical data indicates that these corrections are often followed by recovery operations. The average recovery time for bitcoin correction was about 30 days, according to the research conducted by Coinmetrics (Source: Coinmetrics, 2025-02-26). The trading volume analysis showed that while the size of bitcoin rose, Altcoins like Ethereum and Solana have increased in a higher size, as Ethereum size reached $ 20 billion and Solana reached $ 10 billion (Source: CryptocCOCAMPare, 2025-02-26). This indicates a shift in liquidity towards Altcoins during the correction. The scales on the series also revealed that the number of active addresses on the Bitcoin network increased by 10 % during the correction, indicating that more users were participating with the network despite low prices (Source: Glassnode, 2025-02-26).

Technical indicators provided additional visions in the market dynamics during this period. The RSI of Bitcoin has decreased to 30, indicating that the original was excessive and perhaps due to the reversion (Source: TradingView, 2025-02-26). The difference in the moving average rapprochement (MACD) showed a declining intersection, confirming the declining momentum (Source: Tradingview, 2025-02-26). Betcoin’s Bollinger ranges widened, with a lower price touch, another sign of increased volatility and reflection (Source: TradingView 2025-02-26). The BTC/USD trading volumes on Binance amounted to $ 25 billion, while in Coinbase, it was $ 20 billion, indicating a strong trading activity despite the correction (Source: CryptocCOSPARE, 2025-02-26). For other trading pairs, the ETH/BTC pair witnessed a size of $ 5 billion, and the Sol/BTC husband reached two billion dollars, indicating that the merchants were actively participating with multiple cryptocurrencies (Source: CryptocCOSPARE, 2025-02-26). The scales on the series also highlighted a 20 % increase in the number of large transactions (more than 100,000 dollars) on Bitcoin, indicating that the whales were actively moving their possessions during the correction (Source: Glassnode, 2025-02-26).

Regarding AI’s news, there were no direct developments from artificial intelligence on February 26, 2025, which could have affected the encryption market. However, feelings about artificial intelligence and their potential impact on cryptocurrencies remained positive, as well as constant interest in trading algorithms that depend on artificial intelligence and the performance of the symbols associated with prosecution such as Sergenuralriat (AGIX) and Fetch.AI (Fet). Despite the wider market correction, AGIX saw only 10 % smaller, as it decreased from $ 0.50 to $ 0.45, while FET saw 12 % decrease from $ 1.20 to $ 1.06 (Source: Coingecko, 2025-02-26). This flexibility can be attributed to the increasing interest in artificial intelligence applications within the encryption space, as mentioned by industry analysts (Source: Cryptoslate, 2025-02-26). The relationship between the developments of artificial intelligence and the morale of the encryption market remains a major field of concentration, as trading sizes driven by artificial intelligence show a slight increase during the correction, indicating that artificial intelligence algorithms were actively adapting to market conditions (Source: Kaiko, 2025-02-26).