Is BTC Heading Towards Another Crash?

This month, BTC has seen some volatility and unpredictable pricing. This volatility came in the wake of macroeconomic developments. As a result, the token fell from its all-time high of $109K to a bracket between $98,000 and $95,000 since February 3rd. However, analysts have noted that a descending triangle forms at a higher time frame. As a result, the market is bracing itself for BTC price crashing under the $95K mark. 

As per on-chain analyst Martuun, BTC’s inter-exchange flow pulse, or IFP, is not looking good. The aforementioned analysis has turned negative. This implies a declining interest of investors in BTC as a digital asset. IFP primarily flows between derivative and spot markets. Historically, it is seen that the token is usually transferred from a spot market to a derivative market. This is because a market in an uptrend helps instill investor confidence in a coin for the long term.  

Source: Tradingview

Similarly, whenever the price shows a small iota of weakness, a bearish trend takes over. BTC starts flowing from the futures to the spot market as investors brace themselves for a shakedown. February 16th saw that bearish flip, which was followed by a dip in its pricing. The coin came down from its all-time high in a few hours.  

Repeating History 

BTC researcher Axel Adler Jr. states this is not an isolated event. Back in January 2022, liquidation dominance reached close to 25%. This market dominance marks the very beginning of a bearish market. Like 2025, this dominance came just a few days after the record high.  

Even though a possible slump is coming, the market is still under control. Adler states, “At the moment, the market is responding adequately to this pressure, which essentially indicates strong demand during corrections. Buyers are actively “buying the dips,” limiting the depth of Bitcoin’s decline.” 

Therefore, historical data does suggest that a slump or a dip might be arriving soon. However, this is just the cyclic nature of coin, and investors must not panic.