On February 16 (9:30 am IST), Bitcoin fell as low as $68,091 in early trading but recovered some of those losses to trade at $68,374—a decrease of 2.20 percent in the previous day.
“BTC rose from about $66.8K to near $71K but was unable to break above that level, keeping the $70K–$71K area as a key resistance zone for now.” Following several attempts to rise, the price gradually returned to the $68.5K–$69K area.
The $68K level is still a crucial support to keep an eye on, while the $69.5K level is serving as a temporary barrier, according to the CoinSwitch Markets Desk.
The cryptocurrency market is at a critical point, according to Riya Sehgal, Research Analyst at Delta Exchange, with dwindling ETF inflows since mid-January supporting a cautious stance. The entire cryptocurrency market is still range-bound, and traders are keeping a careful eye on these turning points. “Market confidence might be restored by a robust Bitcoin recovery over $70,000, but a failure to hold present supports could lead to another wave of risk-off sentiment across digital assets.”
Tether had a 0.03 percent decline, Bitcoin Cash saw a 0.13 percent decline, TRON saw a 0.79 percent decline, and Dogecoin saw a 10.99 percent decline.
BNB was down 3.04 percent, Solana was down 3.76 percent, Ethereum was down 4.87 percent, and XRP was down 4.28 percent. USDC, on the other hand, did not move over the course of the day.
Humanity Protocol is up 9.9 percent for the day, and Kite is up more than 1.22 percent. In addition, Zcash has increased by 9.13 percent, Story has increased by 9.17 percent, Dogecoin has decreased by 9.13 percent, and LayerZero has dropped by 9.45 percent.
According to CoinDCX Research Team, “the on-chain data indicates that over $1.9 billion in leveraged positions have been liquidated in the last week, while the stablecoin market cap adds $5.5B and DeFi spot volume is up by 3x since the start of the year.”
What is causing Bitcoin to crash? Is it time to make an investment?
“The current cryptocurrency slump seems more like repositioning than panic. Although deleveraging and macro uncertainties have caused volatility, institutional participation has not changed, suggesting that investors still have faith in Bitcoin’s long-term prospects. The fundamental market structure still suggests consolidation rather than collapse, even though prices may remain range-bound and responsive to liquidity constraints in the near future, according to Avinash Shekhar, co-founder and CEO of Pi42.
Giottus CEO Vikram Subburaj suggests, “Shrewd investors might employ risk-managed mechanisms, such SIPs or hedged futures positions, to traverse volatility and think about a staggered accumulation around support.” Avoiding short-term changes is preferable.
