Crypto Selloff Attributed to Multi-Asset Deleveraging
- Surge in Trading Volume: IBIT recorded a trading volume of $10 billion on February 5, doubling its previous high, and despite Bitcoin's 13.2% drop, the ETF still posted $230 million in net creations, indicating sustained market interest in crypto assets.
- Risk Management Pressure: Goldman Sachs' prime brokerage desk noted that February 4 was one of the worst days for multi-strategy funds, with a z-score of 3.5, highlighting extreme market volatility that forced risk managers into indiscriminate deleveraging, resulting in a bloodbath on February 5.
- Basis Trade Impact: The CME basis trade emerged as a primary driver of selling pressure, with the near-dated basis jumping from 3.3% on February 5 to 9% on February 6, marking one of the largest moves observed since the ETF launch, reflecting strong market reactions to Bitcoin.
- Options Market Dynamics: The options market exhibited excessively cheap selling behavior, leading traders to hold short gamma positions, particularly when Bitcoin was in the $64,000 to $71,000 range, which exacerbated the downward pressure on the market.
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Technical Analysis for BTC
Technical Sentiment Analysis for Bitcoin (BTC) As of , Bitcoin (BTC) is exhibiting a Sell technical sentiment. Our proprietary analysis, which aggregates 4 technical signals, shows that 1 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status Currently, the Relative Strength Index (RSI) for BTC stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the stock.
Support, Resistance & Moving Averages From a structural perspective, BTC is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Bitcoin (BTC) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 36429.06 | 48214.53 | 61164.81 | 72950.28 | 85900.56 | 97686.03 | 110636.31 |
| Fibonacci | 48214.53 | 57663.586 | 63501.224 | 72950.28 | 82399.337 | 88236.973 | 97686.03 |
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