Bitcoin Stalls at $71,000... Is It Headed for Another Plunge?

▲ Bitcoin (BTC)

Bitcoin (BTC) has lost upward momentum after colliding with the massive resistance wall at $71,000, stoking fears of a short-term sharp decline across the market.

According to crypto-focused media outlet NewsBTC on February 16 (local time), Bitcoin recently attempted to break above $71,000 but was pushed back by strong selling pressure and is now facing renewed downside pressure. The cryptocurrency is currently trading below the $70,000 level and has fallen beneath the 100-hour simple moving average (SMA), exposing technical vulnerability. Market participants warn that if Bitcoin fails to surpass the psychological resistance at $71,000, further correction may be inevitable.

Chart analysis shows that a key ascending trendline formed near $69,500 on the hourly chart is under threat. Bitcoin is being capped by dual resistance levels at $70,500 and $71,000, and failure to definitively break above them could sharply dampen investor sentiment. Experts note that if Bitcoin manages to secure a position above $71,000, it could extend its rally toward $72,500 and eventually the $75,000 mark. However, for now, downside risks appear to dominate.

Technical indicators are also signaling pessimism. The Moving Average Convergence Divergence (MACD) is gradually losing momentum in bullish territory, while the Relative Strength Index (RSI) has fallen below the neutral 50 level, suggesting that selling pressure is gaining control of the market. In particular, short-term resistance around $70,500 remains firm, underscoring the urgent need for strong buying inflows to break through this barrier.

If the downtrend continues, Bitcoin is expected to first test support at $69,200. Should this level collapse, prices could slide further to $68,500, raising the risk of a broader wave of cascading sell-offs across the market. Bitcoin currently stands at a crossroads between upward and downward momentum, with extreme short-term volatility anticipated, requiring heightened caution from investors.

The Bitcoin market is experiencing severe choppiness as the absence of strong spot buying converges with speculative selling pressure in the derivatives market. If Bitcoin fails to reclaim $71,000 and loses its lower support levels, the market trend could fully shift to the downside. Investors are advised to closely monitor whether key technical resistance levels are breached in real time and to focus on conservative portfolio management in preparation for heightened volatility.

Disclaimer: This article is provided for investment reference only and we are not responsible for any investment losses based on it. The information should be interpreted for informational purposes only.