Bitcoin’s price is facing potential downward pressure as technical indicators suggest a possible retest of key support levels. Analysis from Material Indicators on February 17th indicates that Bitcoin, trading around $95,827 at the time, could experience further declines due to the appearance of “death crosses” on daily charts. These bearish patterns, formed when short-term moving averages cross below long-term moving averages, often signal weakening price momentum. However, the analysis also highlights bid liquidity around $95,000 and secondary support at $92,000, which could provide a cushion against significant losses.
Material Indicators observed a shift in market liquidity, with retail investors holding firm while larger players adjusted their positions. This potential “shakeout” underscores the importance of patience and disciplined trading strategies. Co-founder Keith Alan expressed confidence in the downturn, viewing it as an opportunity to accumulate long-term holdings.
The President’s Day holiday closure on Wall Street prevented institutional investors from influencing Bitcoin’s price. Concurrently, QCP Capital reported a decline in overall trading volumes due to a lack of volatility triggers. Implied and realized volatility continued to drop, reaching 36%, indicating relative market stability despite price fluctuations.
Macroeconomic factors continue to play a role, with Bitcoin maintaining its correlation with equity markets. While inflation concerns persist, Bitcoin has shown resilience to recent economic data releases. QCP Capital noted low open interest in Bitcoin options, suggesting traders are awaiting concrete policy decisions rather than reacting to speculative sentiment.
Analysis of Binance order book data reinforces the possibility of an upcoming price test. Material Indicators shared a snapshot showing substantial bid interest around $95,000, while larger investors reduced their Bitcoin exposure over the weekend. The presence of support at $92,000 suggests a further decline could validate this key support zone, potentially influencing future price action.
Traders remain cautious, closely monitoring technical signals. While the death crosses suggest a potential prolonged downtrend, some view the current market conditions as a buying opportunity. Material Indicators emphasized the importance of strategic planning, advising traders to remain patient and adhere to their trading plans.
In conclusion, Bitcoin’s price trajectory will likely depend on its interaction with current support levels, volatility trends, and broader macroeconomic developments. The confluence of death crosses and strong support at $92,000 creates a critical juncture for Bitcoin, with the potential for significant price movement in the coming days. While uncertainty persists, a drop to $92,000 could solidify this level as a strong foundation for future price appreciation.
