Bitcoin Stalls After Vertical Plunge… “A True Breakout Hinges on Volume”

▲ Bitcoin (BTC) / ChatGPT-generated image

Bitcoin (BTC) has entered a period of calm before the storm as it remains trapped in a narrow triangular consolidation range after plunging from the mid-$90,000 zone to the $60,000 range, signaling a decisive move for a new direction.

According to crypto-focused outlet U.Today on Feb. 19 (local time), Bitcoin has been moving sideways within an extremely tight range following its sharp drop from the mid-$90,000 level to the $60,000 zone. On the daily chart, Bitcoin appears to be forming a triangular structure as it fluctuates between approximately $66,000 and $70,000. Such price compression typically emerges after a period of high volatility, when the market searches for a new directional trend.

Although buyers have yet to secure enough momentum to reclaim the key resistance level above $72,000, selling pressure also appears to be losing strength. As market participants adopt a wait-and-see approach for a decisive catalyst, Bitcoin is effectively in a state of equilibrium. While a breakout from the narrowing range seems inevitable over time, the exact timing remains uncertain.

Compared to the fear-driven bottoming phase, current trading volume indicates significantly lower market participation. If a breakout attempt occurs without a notable surge in volume, the risk of a false breakout—rather than a sustainable trend reversal—remains high. From a technical standpoint, Bitcoin continues to trade below major downward-sloping moving averages, meaning even a temporary rebound would likely face strong resistance.

If the price fails to break above the upper boundary of the range and panic selling resumes, the risk of a renewed decline toward recent lows could quickly resurface. Investors are urged to remain patient, as sideways movement following a sharp correction often represents a structural stabilization phase before a new trend forms. Close attention should be paid to whether trading volume accompanies a clear move outside the $66,000 to $70,000 range.

According to U.Today reporter Godfrey Benjamin, Coinbase CEO Brian Armstrong explained in detail why Wall Street is misunderstanding Coinbase. Armstrong’s remarks provide important clues as to how investors should interpret the current market environment. A cautious stance is warranted, with close monitoring of volume changes until Bitcoin decisively breaks out of the $66,000 to $70,000 range.

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