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Bitcoin May Be Headed Lower: Key Support Levels at Risk
Death Crosses Appear on Bitcoin Charts: What Traders Need to Know
Bitcoin’s Price Could Retest Support Amid Low Volatility and Market Liquidity Changes
Bitcoin’s price is facing potential downward movement as technical indicators point toward a possible retest of key support levels. According to analysis from Material Indicators on Feb. 17, Bitcoin, currently priced at $95,827, may experience a decline due to the appearance of “death crosses” on daily charts. A death cross occurs when short-term moving averages fall below long-term ones, often signaling weakening price momentum.
Despite the bearish outlook, the analysis indicates that bid liquidity at the $95,000 level and secondary support around $92,000 could help stabilize the price and prevent further decline.
Material Indicators also noted that while market liquidity is shifting, retail investors remain active and continue holding their positions, while larger entities adjust their exposure. The firm described the current market conditions as a potential “shakeout,” urging traders to remain patient and disciplined in their strategies. Co-founder Keith Alan expressed confidence in the market downturn, viewing it as an opportunity to strengthen long-term holdings rather than as a cause for concern.
External factors are also influencing Bitcoin’s price action. With Wall Street closed for the President’s Day holiday, institutional investors were unable to impact Bitcoin’s movements. At the same time, QCP Capital observed a drop in overall trading volumes, attributing the slowdown to a lack of volatility triggers. Implied volatility continued to decline, with realized volatility falling to 36%, reflecting a relatively stable market despite price fluctuations.
The broader macroeconomic landscape remains an influencing factor, with Bitcoin continuing to show correlation with equity markets. Despite ongoing inflation concerns, Bitcoin has shown resilience in the face of recent macroeconomic data. QCP Capital also noted that open interest in Bitcoin remains low, suggesting options traders are waiting for clearer policy decisions rather than reacting to speculative sentiment.
Further analysis of Binance’s order book data also supports the likelihood of a price test. Material Indicators shared a snapshot showing significant bid interest around the $95,000 mark, while all order classes—except for retail traders—reduced their Bitcoin exposure over the weekend. The $92,000 support level is seen as key, and a further drop could serve as a confirmation of the importance of this support zone, possibly setting the stage for future price movements.
Traders remain cautious, monitoring the technical signals closely. The appearance of death crosses suggests the potential for a prolonged downtrend, but some investors are viewing the current market conditions as an opportunity to accumulate more Bitcoin. Material Indicators emphasized the need for strategic planning during such market conditions and advised traders to stay patient and adhere to their targets.
As uncertainty persists, Bitcoin’s position within its current trading range, along with low volatility and macroeconomic factors, will likely dictate price action in the coming days.
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