Bitcoin’s price faces potential downward movement as technical indicators signal a possible retest of support levels. Analysis shared by Material Indicators on Feb. 17 suggests that Bitcoin, currently trading at $95,827, may experience further declines due to “death crosses” appearing on daily charts. These crosses, where short-term moving averages drop below long-term ones, often indicate weakening price momentum. However, the analysis also points to bid liquidity at $95,000 and secondary support at $92,000, which could help stabilize prices.
Material Indicators highlighted that while market liquidity is shifting, retail investors remain engaged, continuing to hold their positions while larger entities adjust their exposure. The firm described the situation as a potential “shakeout,” emphasizing the importance of patience and disciplined trading strategies. Co-founder Keith Alan expressed confidence in the downturn, stating that he sees it as an opportunity to strengthen long-term holdings rather than a cause for concern.
External factors are also influencing market conditions. With Wall Street closed for the President’s Day holiday, institutional investors were unable to impact Bitcoin’s price movements. Meanwhile, QCP Capital observed a decline in overall trading volumes, attributing the slowdown to a lack of volatility triggers. The firm reported that implied volatility continued to drop, with realized volatility falling to 36%. This indicates that, despite price fluctuations, the market remains relatively stable without strong directional momentum.
The broader macroeconomic landscape remains a factor, as Bitcoin continues to correlate with equity markets. Although inflation concerns persist, Bitcoin has shown resilience to recent macroeconomic data releases. QCP Capital noted that open interest in Bitcoin remains low, suggesting that options traders are waiting for concrete policy decisions rather than responding to speculative sentiment.
Analysis of Binance order book data further supports the idea of an upcoming price test. A snapshot shared by Material Indicators shows significant bid interest around the $95,000 level, while all order classes, except retail traders, reduced their Bitcoin exposure over the weekend. The presence of support at $92,000 suggests that a further drop could serve as a validation of key support zones, potentially setting the stage for future price movements.
Traders remain cautious, with many monitoring technical signals closely. The appearance of death crosses suggests the potential for a prolonged downtrend, yet some investors view the current conditions as an opportunity to accumulate more Bitcoin. Material Indicators emphasized the importance of strategic planning in such market conditions, advising traders to remain patient and stick to their targets.
While uncertainty remains, Bitcoin’s current position within its trading range, coupled with low volatility and macroeconomic influences, will likely dictate price action in the coming days.
