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BTC price downside looks increasingly likely as Bitcoin chart analysis prepares for a “shakeout.”
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Bitcoin (BTC) faces a new “dip” toward three-month lows as BTC price trend lines flash red.
New analysis, uploaded to X on Feb. 17 by trading resource Material Indicators, warns that BTC/USD could see more downside next.
Clock ticks down to BTC price “shakeout”
Bitcoin may be stuck in a narrow range this month, but market participants increasingly see the status quo changing rapidly.
For Material Indicators, moving averages (MAs) on daily timeframes point the way to lower BTC price levels.
“We are seeing Death Crosses on the Bitcoin D chart, but we are also seeing BTC bid liquidity appearing in the order book that could limit the downside volatility,” part of the post states.
“FireCharts shows local support at $95k and secondary support at $92k. Another flush to this range might be the validation of support the market is looking for.”
BTC/USDT order book liquidity data for Binance. Source: Material Indicators/X
An accompanying snapshot from one of Material Indicators’ proprietary trading tools highlights BTC/USDT liquidity conditions on global exchange Binance, with a clear line of bid interest at $95,000.
The chart further shows all order classes reducing BTC exposure with the exception of retail investors over the weekend.
“The key here is patience and discipline. Know your targets and stick to your plan,” Material Indicators advised.
A “death cross” refers to a shorter-term trend line crossing below a long-term one, implying recent price action is comparatively weak. This can signal the start of a protracted downtrend as momentum fails to sustain previous levels.
Material Indicators co-founder Keith Alan described the potential upcoming drop as a “shakeout.”
“I do not fear this dip. In fact, I welcome it, and I’m looking to add to my longer term position,” he told X followers.
BTC/USDT 1-day chart with MAs. Source: Keith Alan/X
Bitcoin realized volume takes a hit
With Wall Street closed for the President’s Day holiday in the US, institutional market involvement could not effect change on short-term trends on the day.
Related: $102K BTC price ‘short squeeze’? 5 things to know in Bitcoin this week
Commenting, trading firm QCP Capital noted that overall trading volumes had declined significantly amid a broad lack of volatility cues.
“With BTC comfortably back in the middle of the range, implied vols continue to drift lower which comes as no surprise given that 7d realized vol has dipped to 36v,” it reported in its latest bulletin to Telegram channel subscribers.
“With no significant crypto-specific catalysts in sight, price action appears to be more macro driven particularly as the correlation between BTC and equities remains largely intact.”
As Cointelegraph reported, resurgent inflation pressures remain a key consideration for risk-asset traders.
QCP, however, described Bitcoin as being “relatively unfazed by the recent macro data,” with open interest, or OI, staying low.
“This suggests that the crypto options market is just waiting on the sidelines for concrete policy changes rather than just pro-crypto rhetoric,” it concluded.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article first appeared at Cointelegraph.com News
