When Will Bitcoin Price Bottom? Traders Eye Key Support Levels After 30% Drop

Bitcoin (BTC) is grappling with support levels not seen in months as it faces a significant decline from its all-time highs. After a nearly 30% drop in price, the cryptocurrency is approaching a critical juncture, leaving traders and analysts questioning where the bottom might be. Could the BTC price find a definitive floor after erasing much of the "Trump pump" from its recent rally?

As of February 28, Bitcoin is perilously close to testing the old all-time highs from March 2024, which were around $78,000. Here's a closer look at the popular targets and key levels that traders are watching to determine if Bitcoin’s price action has reached a floor.

CME Futures Gap: A Key Price Target

A major area of focus for traders is the gap in CME Group’s Bitcoin futures markets. This gap was created during Bitcoin’s rapid ascent toward $100,000 and beyond. The gap lies between the $78,000 and $80,700 range, and as of late February, Bitcoin has nearly filled it entirely.

Popular trader and analyst Rekt Capital highlighted the gap in a post, noting that Bitcoin is getting closer to filling the CME gap formed in November 2024. Historically, CME gaps tend to serve as short-term magnets for Bitcoin’s price, often getting filled quickly. Even gaps that remain open for longer periods are typically revisited when Bitcoin’s macro trend shifts.

Additionally, Rekt Capital pointed to a CME gap to the upside around $92,000, which could serve as a potential target in case of a relief bounce.

Long-Term Bitcoin Target at $76,000

One experienced market participant, known as BitQuant, has consistently predicted major corrections throughout Bitcoin's bull run. Despite Bitcoin's record highs near $110,000, BitQuant maintained a cautious stance on the near-term outlook.

In December, BitQuant warned that the $90,000 level would not serve as reliable support. Now, with Bitcoin's price action in the lower $80,000s, BitQuant reiterates his long-term expectation that Bitcoin will revisit the mid-$70,000 range before resuming its upward trajectory.

On February 28, BitQuant urged his followers not to panic, asking them if they were "panic buying or panic selling." His sentiment highlights the expectation that Bitcoin could soon find support in the mid-$70,000 zone, where buyers may start to step in and reverse the current downtrend.

Liquidity Building Between $70,000 and $80,000

As traders attempt to time the market bottom, the presence of thick liquidity between $70,000 and $80,000 is noteworthy. Large-volume market participants often add and remove bids at these levels, sometimes manipulating price trajectories. Currently, there is an unusually high amount of liquidity in this price corridor.

Popular trader Daan Crypto Trades reported that about $1.8 billion in buy bids have appeared on Binance futures between the $70,000 and $79,000 range. This large amount of liquidity could act as a buffer to prevent further price declines or, conversely, trigger a significant move if the bids are filled.

However, traders should be cautious, as such large bids can be pulled away quickly, leaving the market vulnerable to rapid price movements. These conditions create uncertainty, making it difficult to predict the direction Bitcoin will take next.

Risks of "Catching a Falling Knife"

The volatility in Bitcoin’s price is further amplified by the risks of trying to time the market bottom, as the market remains unpredictable. As Keith Alan, co-founder of trading suite Material Indicators, pointed out, traders should be aware of the inherent risks involved in trying to catch a market rebound before it truly materializes.

“I'm looking for a wick to the trend line. More importantly, I'm looking for buyers to come in...as long as they don't front-run me,” Alan said in a post to his followers.