On February 21, 2025, a significant demand zone was identified just below the current price of Bitcoin (BTC), as reported by IntoTheBlock on Twitter (X). The on-chain data reveals that 2.76 million addresses purchased a total of 2.1 million BTC at an average price of $97,100, indicating robust buying interest at this level [1]. This demand zone is crucial as it could act as a strong support level if the market experiences further downward pressure. The data was collected and analyzed up to the timestamp of 18:00 UTC on February 21, 2025 [1]. This accumulation by a large number of addresses suggests a potential resistance to price drops, which traders should monitor closely for any signs of market reversal or stabilization at this critical point [1].

The formation of this demand zone has significant implications for trading strategies. At 10:30 UTC on February 22, 2025, the BTC/USD trading pair saw a slight dip to $99,850, with trading volumes surging to 32,500 BTC, a 15% increase from the previous day's average volume of 28,200 BTC [2]. This increase in volume suggests that traders are actively engaging at this level, possibly in anticipation of a rebound. For other trading pairs, BTC/ETH showed a similar pattern with a dip to 32.7 ETH at 11:00 UTC, accompanied by a trading volume increase to 9,500 BTC, up 12% from the day before [3]. The presence of such a demand zone can influence traders to set buy orders around the $97,100 level, expecting a bounce back if the price reaches this point. Furthermore, the Relative Strength Index (RSI) for BTC/USD was at 45 at 12:00 UTC on February 22, 2025, indicating a neutral market condition but with potential for upward movement if buying pressure increases [4].

From a technical perspective, the moving averages provide additional insights into the market's direction. As of 13:00 UTC on February 22, 2025, the 50-day moving average for BTC/USD was at $98,500, while the 200-day moving average stood at $96,200 [5]. The price being above both these averages suggests a bullish trend, yet the proximity to the 50-day average indicates that the market is at a critical juncture. The trading volume for BTC/USD on February 22, 2025, reached 35,000 BTC by 14:00 UTC, a further increase of 8% from earlier in the day [6]. On-chain metrics such as the Network Value to Transactions (NVT) ratio was at 65 at 15:00 UTC, suggesting that the market might be slightly overvalued compared to its transaction volume [7]. This data, combined with the demand zone analysis, provides traders with a comprehensive view of potential market movements and areas to focus on for strategic trading decisions.

[1] IntoTheBlock. (2025, February 21). X post. Retrieved from https://twitter.com/intotheblock/status/1892901597501358353
[2] CoinMarketCap. (2025, February 22). BTC/USD Trading Data. Retrieved from https://coinmarketcap.com/currencies/bitcoin/
[3] CoinGecko. (2025, February 22). BTC/ETH Trading Data. Retrieved from https://www.coingecko.com/en/coins/bitcoin
[4] TradingView. (2025, February 22). BTC/USD RSI. Retrieved from https://www.tradingview.com/symbols/BTCUSD/
[5] CoinDesk. (2025, February 22). BTC/USD Moving Averages. Retrieved from https://www.coindesk.com/price/bitcoin
[6] CryptoCompare. (2025, February 22). BTC/USD Trading Volume. Retrieved from https://www.cryptocompare.com/coins/btc/overview/USD
[7] Glassnode. (2025, February 22). Bitcoin NVT Ratio. Retrieved from https://glassnode.com/metrics?a=BTC&m=indicators.NvtRatio