Bitcoin rebounds to $84K — Analysts say BTC crash was ultimate buy signal

Bitcoin (BTC) price dropped 21.3% between Feb. 21 and Feb. 28, retesting the $78,300 level for the first time since November 2024. The correction led to over $1.6 billion in leveraged long (buy) liquidations, adding to market volatility as exchanges forcefully sold contracts. The $21,210 decline marked the largest seven-day drop in Bitcoin’s history.

Despite the pullback, several Bitcoin analysts see this as a strong buying opportunity. They cite factors such as regulatory developments, sovereign fund exposure, onchain and technical signals, and increasing integration with traditional finance, including bank adoption as collateral and structured product offerings.

User Obviously_Obv, reportedly a Web3 game researcher at Sigil Fund, stated that the current price action resembles a “bear trap,” as the Crypto Fear & Greed Index hit its lowest levels since 2022. He also claimed that government entities worldwide are “about to buy Bitcoin,” not just the U.S.

Similarly, Eric Weiss, CEO of Blockchain Investment Group LP, shared a report from Tephra Digital outlining key events that could drive higher adoption rates and positively impact Bitcoin’s price.

According to the report, the next steps include in-kind creation and redemption for Bitcoin ETF issuers in the US, improving market efficiency. Another key factor is the legal classification of Bitcoin as a strategic reserve asset, which would allow BTC deposits to be used as collateral, similar to gold. Analysts also highlight increasing exposure from sovereign wealth funds and the approval of solicited sales by banks as potential catalysts for wider Bitcoin adoption.

User apsk32, allegedly an engineer and Bitcoin enthusiast, stated that based on historical four-year cycle patterns, BTC is “on track for” reaching $230,000 to $290,000 by December 2025.

According to the analyst, traders should “soak up the cheap coins” as the “opportunity won’t last forever.” From an onchain analysis perspective, data suggests that long-term holders were not the main contributors to Bitcoin’s drop below $80,000, increasing the likelihood of a swift recovery above $95,000.

User CarlBMenger, author of the Carl ₿ Menger’s Newsletter, noted that “74% of the realized Bitcoin losses came from holders who bought in the last month.” He added that inexperienced traders are folding under pressure, while seasoned investors remain unaffected by the price fluctuation.

Beyond the potential buying pressure from nation-states, Luke Broyles, a collaborator at Blockware Mining, explained on X that a single US-listed company could acquire 84,090 BTC. This would make it the second-largest holder after Strategy (formerly MicroStrategy), which currently holds 499,096 BTC.

Broyles’ hypothesis assumes the company would use its entire cash and equivalent position to buy Bitcoin at $88,000 and raise an additional $3 billion in debt to increase holdings at $110,000. However, even if GameStop allocated only 20% of its current reserves, that would represent 11,765 BTC at $85,000—enough to secure the fourth-largest position behind MARA Holdings and Riot Platforms.

Related: GameStop rises 18% after hours on reports it’s considering investing in Bitcoin

Different analysis models suggest that buying Bitcoin below $85,000 is a golden opportunity, one that may not be available for long. Bitcoin’s censorship resistance and digital scarcity features have not been impacted by the worsening macroeconomic environment. In time, its price is expected to rise above $100,000, reflecting the conviction of its current holders and benefiting from deeper integration into the traditional finance system.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.