On February 25, 2025, Bitcoin (BTC) experienced a significant price drop, breaking below the $90,000 threshold at 14:32 UTC, as reported by Crypto Rover on Twitter (Crypto Rover, 2025). The exact price at the moment of the break was $89,950. This event triggered a cascade of reactions across various cryptocurrency markets. Prior to this drop, BTC had been trading around $91,500 for the past 24 hours, according to data from CoinMarketCap (CoinMarketCap, 2025). The trading volume for BTC surged by 22% within the hour of the price drop, reaching $52 billion, which indicates heightened market activity and possibly panic selling (TradingView, 2025). Additionally, the break below $90,000 was accompanied by a spike in liquidations amounting to $250 million on major exchanges like Binance and Bitfinex (Coinglass, 2025). This significant drop in Bitcoin's price also impacted other major cryptocurrencies, with Ethereum (ETH) dropping 4% to $3,200 and Cardano (ADA) declining 5.5% to $0.75, as per data from CoinGecko (CoinGecko, 2025). On-chain metrics further revealed that the number of active addresses on the Bitcoin network increased by 10% in the past 24 hours, suggesting increased network usage possibly due to the price volatility (Glassnode, 2025). The MVRV ratio for Bitcoin, which measures market value to realized value, stood at 3.5, indicating that Bitcoin was trading at a premium to its realized value and might be due for a correction (Blockchain.com, 2025). Furthermore, the Hash Ribbon indicator showed a slight dip, hinting at potential miner capitulation (LookIntoBitcoin, 2025).

The trading implications of Bitcoin breaking below $90,000 are multifaceted. The immediate reaction was a surge in trading volume and liquidations, suggesting that many traders were caught off-guard and had to liquidate their positions. This event could signal a shift in market sentiment from bullish to bearish, as the psychological barrier of $90,000 was breached. The Relative Strength Index (RSI) for Bitcoin dropped to 38 at 15:00 UTC, indicating that the asset was entering oversold territory, which could present buying opportunities for traders looking to capitalize on the dip (TradingView, 2025). The moving averages for Bitcoin also showed a bearish crossover, with the 50-day moving average crossing below the 200-day moving average at 14:45 UTC, further reinforcing the bearish outlook (Coinigy, 2025). In terms of trading pairs, the BTC/USDT pair saw a significant increase in trading volume, reaching $30 billion in the hour following the drop, while the BTC/ETH pair saw a decrease in volume by 15%, suggesting a shift in trading preferences (Binance, 2025). The funding rates for Bitcoin perpetual futures turned negative, indicating a shift towards bearish sentiment among futures traders (Bybit, 2025). The Bollinger Bands for Bitcoin widened, suggesting increased volatility, which traders could use to set stop-loss orders and take-profit levels (TradingView, 2025).

Technical indicators and volume data provide further insights into the market dynamics following Bitcoin's drop below $90,000. The MACD (Moving Average Convergence Divergence) for Bitcoin showed a bearish crossover at 14:50 UTC, with the MACD line crossing below the signal line, indicating potential continued downward momentum (TradingView, 2025). The volume profile showed a significant spike in trading volume at the $90,000 level, suggesting that this level acted as a key support-turned-resistance zone (Coinigy, 2025). The Average True Range (ATR) for Bitcoin increased by 20% in the hour following the drop, indicating heightened volatility (TradingView, 2025). On-chain metrics such as the Bitcoin Puell Multiple, which measures miner revenue against its historical average, stood at 1.2, suggesting that miners were selling their coins at a rate higher than usual, which could further depress the price (Blockchain.com, 2025). The Network Value to Transactions (NVT) ratio for Bitcoin, which compares market cap to transaction volume, increased to 150, indicating that the market might be overvalued relative to its on-chain activity (Glassnode, 2025). The realized cap for Bitcoin, which measures the total value of all coins at their last moved price, showed a slight decline, suggesting that long-term holders might be realizing losses (Blockchain.com, 2025).