Bitcoin Price Wobbles: $90K Risk?
Bitcoin (BTC) traded sideways this week, fluctuating within a narrow range of $97,000–$98,000. This consolidation follows a week of intense volatility and comes amidst conflicting market signals.
Conflicting Market Signals
Bearish pressure stemmed from hotter-than-expected U.S. CPI inflation data released February 13th, prompting investors to shift away from riskier assets and anticipate further interest rate hikes. Conversely, the SEC's acknowledgment of Grayscale's ETF filings for XRP and Dogecoin injected a degree of bullish sentiment, suggesting a potential shift in regulatory attitudes towards cryptocurrencies.
The overall effect was a muted price performance for Bitcoin. A mild 0.18% increase this week, from $96,444 on February 9th to approximately $97,500 on February 15th, underscores the market's uncertainty.
Massive Exchange Deposits
Despite the neutral spot market sentiment, on-chain data reveals a potential trigger for a price breakout. CryptoQuant's Exchange Reserve chart shows a significant increase in Bitcoin deposits on exchanges. Between February 6th and 15th, deposits surged by 12,000 BTC, valued at over $1.2 billion.
This increase in exchange reserves, coupled with stagnating prices, often precedes downward price movements. This is especially concerning given the recent gains experienced by altcoins like XRP, SOL, and DOGE, potentially indicating that some traders are moving out of Bitcoin.
Rising Wedge Pattern and $90,000 Breakdown Risk
Bitcoin's price action is currently contained within a rising wedge pattern—a bearish technical indicator suggesting a potential exhaustion of bullish momentum. Decreasing volume confirms waning buying pressure. The average daily range (ADR) of 1.40 points to compressed volatility, often preceding significant price movements.
Key Support and Resistance Levels:
- Support: $97,093 (100-day SMA), $90,000
- Resistance: $98,784 (50-day SMA), $100,000
A break below the rising wedge's lower trendline could trigger a sharp decline, potentially targeting the 200-day SMA around $50,000. If selling pressure intensifies, a drop below $90,000 is a real possibility. However, reclaiming the $98,784 resistance level could signal renewed bullish momentum, potentially leading to a retest of $100,000.
Codeum: Securing the Future of Blockchain
At Codeum, we are committed to the security and advancement of the blockchain ecosystem. Our services, including smart contract audits, KYC verification, and custom development, ensure the safety and reliability of your blockchain projects. Partner with Codeum to navigate the complexities of the crypto market and build a secure future.
Disclaimer:
This analysis reflects the author's opinion and is subject to change based on market conditions. Conduct thorough research before investing in cryptocurrencies. Neither the author nor Codeum is responsible for any financial losses.