The crimson tide of Bitcoin surged to $70,000, only to recoil like a wounded beast, leaving traders in a frenzy as the market’s pulse faltered.
Amid the hush of the US bank holiday, the market slumbered, yet even in its stillness, the specter of volatility loomed, as thin order books became the battleground for price’s whims.
The weekly RSI, a weary traveler, wandered back to the desolate plains of 2022, where once the market lay in ruins, now a ghost of its former self.
Low-Volume Trading Triggers Liquidity Sweeps
The price, like a moth drawn to a flame, flickered to $70,000 before plunging back into the shadows of $67,000, a dance of illusion and despair.
With Wall Street’s doors closed, the market’s veins thinned, and the price danced to the tune of a few bold players, each move a gamble in a game of chance.
CoinGlass’s grim tally revealed $120 million in crypto’s tears, spilling forth in four hours-a symphony of ruin for both long and short.
The liquidation heatmaps, like maps of a war-torn land, showed clusters of bids and tasks, each a casualty of the market’s capricious nature.
New sell walls, like iron fists, rose above the price, squeezing hope and leaving traders gasping in the dust.
“Liquidity squeezes,” they called it-a euphemism for chaos in a narrow cage.
Breakouts and Shakeouts Define Short-Term Range
Material Indicators, ever the prophets, dubbed the chaos “breakouts and shakeouts”-a ballet of fleeting triumphs and sudden falls.
“Volatility is a tempest,” muttered one trader, “and the markets, once calm, now rage like a drunkard in a tavern.”
Historical charts, those old sages, whispered of a storm brewing, as daily candles swelled to 5%-a rarity since the Tariff market’s downfall.
Volatility has spiked back to levels not seen in nearly a year.
Ever since the Tariff market dump, price action has been rather slow and it was rare to see a BTC daily candle of 5% or more.
The past few weeks that has changed during this market breakdown. Volatility is…
– Daan Crypto Trades (@DaanCrypto)
Another trader, CW, mused that buying pressure, though stronger than Sunday, was met with cold shoulders on exchanges like OKX-a cruel joke in a holiday’s shadow.
Related Reading: Paris Saint-Germain Embraces BTC for Treasury Strategy
Weekly RSI Revisits 2022 Oversold Territory
The weekly RSI, a weary soul, descended to 27.8, the lowest since June 2022-a sign of overwork and exhaustion, yet traders watch with bated breath, for history is a fickle friend.
Keith Alan, the sage of Material Indicators, likened the scene to a ghost from the past, where 2015 and 2018 saw market bottoms, but 2022 brought only months of stagnation.
Finding more similarities with 2022 in the chart as Weekly RSI moves towards what has historically been, once per cycle lows in oversold territory.
In 2015 and 2018 it marked bottom, however in 2022 it led to a 5 month consolidation before establishing a macro bottom.
This…
– Keith Alan (@KAProductions)
Alan warned, “This doesn’t mean it has to develop the same way this time, but it’s worth watching closely.” A warning as hollow as a trader’s promise.
Thus, the market stands at a crossroads, a chessboard of hope and despair, where every move is a gamble and every candle a monologue.
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2026-02-17 10:01