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Highlights
- Bitcoin price plunged to a 3-day low of $95,800 on Monday, Feb. 17, despite prominent altcoins advancing.
- Bitcoin Dominance (BTC.D) has declined 3% in the last 10 days, signaling that investors are increasingly redirecting capital towards altcoins as BTC price stagnates.
- BTC short leverage positions have exceeded long positions by $120 million, raising concerns that market momentum may tilt bearish.
Bitcoin price plunged to a 3-day low of $95,800 on Monday Feb 17, despite prominent altcoins advancing. BTC short leverage positions have exceeded long positions by $120 million, raising concerns that market momentum may tilt bearish.
Bitcoin (BTC) Tests New 3-Day Low as Bears Gain Dominance
Bitcoin (BTC) made a negative start to the week. After holding the $97,000 support for the better part of last week, a mix of bullish and bearish catalysts canceled each other out. However, over the weekend, momentum swung bearish, as bears breached key support levels.
A significant factor drawing capital away from BTC has been the evolving U.S. regulatory stance on altcoins. Fresh institutional interest in alternative cryptocurrencies gained traction after the U.S. Securities and Exchange Commission (SEC) acknowledged new ETF filings from Grayscale for Ripple (XRP), Cardano (ADA), Solana (SOL), and Litecoin (LTC). This acknowledgment fueled speculation that an eventual approval could drive capital inflows into these assets, prompting a shift in market dynamics.
BTC price stagnation over the past week has seen it lose ground to altcoins. TradingView data confirms that BTC price plunged 2% on Monday, dropping to a 3-day low of $95,800. Moreover, Bitcoin Dominance, which tracks BTC’s share of the total crypto market cap, has declined by 3% over the past week. This affirms the shift in investor focus toward altcoins, possibly due to bullish sentiment from softening U.S. regulatory policies and ETF speculation.
If BTC continues struggling to attract demand while alternative cryptocurrencies gain momentum, Bitcoin’s near-term price trajectory could remain under pressure. However, BTC may stabilize if it finds a firm support base amid these shifting market dynamics.
Downside Risks Emerge as BTC Short Leverage Nears $2.3 Billion
Bitcoin’s stagnant price action over the past week has coincided with increased investor interest in altcoins. Bulls made spirited attempts to hold the $97,000 level as BTC struggled to attract fresh demand. However, as BTC price dived below the $95,800 support on Monday, trading trends observed in the Bitcoin derivatives market suggest that most short-term traders are now betting on further price dips
.Supporting this bearish outlook, Coinglass Liquidation Map data highlights a sharp increase in active short leverage positions relative to long positions. The data shows that active short contracts are now worth $2.26 billion, exceeding long positions valued at $1.89 billion. This imbalance of $370 million indicates that bears currently maintain a 20% dominance within the Bitcoin derivatives market, suggesting that after three consecutive days of losses, many bullish traders are capitulating rather than reinforcing their positions.
The growing short leverage position raises concerns about a prolonged BTC downtrend. Historically, when short positions significantly outpace long positions, it signals a lack of confidence among bullish traders. If bearish momentum persists, BTC could see further declines, potentially testing lower support levels near $94,500 or even $93,000 in the coming days.
However, there remains a slim chance for a bullish rebound. When short traders become over-leveraged, markets often witness a short squeeze—where an unexpected surge in buying pressure forces bearish traders to close their positions, leading to rapid price appreciation. Should a significant bullish catalyst emerge this week, BTC could experience a sharp rebound, catching over-leveraged bears off guard.
For now, Bitcoin’s immediate trajectory hinges on whether bulls can reclaim $97,000 or if bears extend their control, pushing BTC towards deeper lows.
Bitcoin Price Forecast: Bulls Could Struggle to Hold $95K Support This Week
Bitcoin price forecast charts flipped bearish on Monday, slipping 3% to hit a three-day low of $95,281 as selling pressure intensified near the $97,000 resistance. The daily chart highlights a critical breakdown below the 50-day simple moving average (SMA) at $97,476, signaling potential weakness in the short-term trend. With the 200-day SMA still far lower at $80,167, bulls must hold $95,000 to avoid deeper downside risks.
Momentum indicators further emphasize the bearish shift. The Moving Average Convergence Divergence (MACD) histogram is firmly in negative territory, with the signal line diverging downward at -845.93. This suggests growing downside momentum, as the bears remain in control. The declining MACD line at -1,066.64 supports this outlook, hinting at further price erosion unless buyers regain control.
However, a countertrend bullish scenario could emerge if Bitcoin stages a rebound above the 50-day SMA. A strong recovery would need to clear resistance at $98,800 to negate further losses. If bulls fail to reclaim key levels, increasing short interest could exacerbate the sell-off, potentially dragging Bitcoin toward the $92,000 region in the coming sessions.
Frequently Asked Questions (FAQs)
1. Why is Bitcoin underperforming compared to altcoins this week?
2. What key support levels should Bitcoin bulls watch this week?
3. How does short leverage impact Bitcoin’s price outlook?
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