 ▲ Bitcoin (BTC) decline / ChatGPT-generated image © |
Bitcoin (BTC) remains stuck in a narrow range between $65,000 and $71,000, continuing its sluggish sideways movement. Meanwhile, outflows from spot exchange-traded funds (ETFs) and defensive positioning in the futures market are heightening concerns over further downside.
According to investment media outlet FXStreet on February 18 (local time), Bitcoin has been fluctuating within a horizontal channel between $65,729 and $71,746 since February 7, struggling to find a clear direction. As of the 18th, Bitcoin is trading around $68,000, hovering near the lower boundary of the range in a precarious position. This movement is interpreted as reflecting cautious sentiment among institutional investors and subdued psychology in the derivatives market.
U.S. spot Bitcoin ETFs, regarded as a barometer of institutional demand, recorded net outflows for four consecutive weeks and saw an additional $104.87 million exit on Tuesday, adding to selling pressure. In contrast, corporate accumulation continues. Strategy, led by Michael Saylor, purchased an additional 2,486 Bitcoin on Tuesday following last week’s acquisition of 1,142 coins, raising its total holdings to 717,131 BTC. Despite prices remaining below its average purchase price of $76,027, the company continues aggressive accumulation based on long-term conviction.
In the derivatives market, a clear exit of long positions has been detected. According to a report by K33 Research, the seven-day average funding rate stood at -0.64%, remaining negative for 11 consecutive days, while open interest fell below 260,000 BTC for the first time since October 12 of last year. This suggests that investors betting on price increases are leaving the market, reducing the likelihood of sharp derivatives-driven volatility or a short squeeze in the near term.
Technical indicators also point to downside pressure. The daily Relative Strength Index (RSI) stands at 35, below the neutral level of 50, indicating strengthening bearish momentum. However, a golden cross on the Moving Average Convergence Divergence (MACD) remains valid, suggesting that the possibility of a bullish reversal has not been entirely extinguished.
Experts warn that if Bitcoin fails to hold support at the lower boundary of $65,729 and closes below it on a daily basis, it could decline toward the key support level of $60,000. Conversely, a strong breakout above the upper resistance level of $71,746 could pave the way for a rebound toward $73,072 and potentially signal a trend reversal.
Disclaimer: This article is for investment reference only and we are not responsible for any investment losses arising from its use. The content should be interpreted solely for informational purposes.