Connect with us

Crypto World

Bitcoin at Critical $69K-$72K Support: Death Cross Signals Deeper Correction Risk

Published

on

quicktake-image

TLDR:

  • Bitcoin death cross forms on daily charts with moving averages positioned far above current price 
  • Weekly close below $69K-$72K support could trigger next leg down into deeper correction territory 
  • Binance withdrawal data shows whale accumulation doubled to 13.3 BTC average since late January 
  • Price must reclaim $82K then mid-$90Ks to establish bottoming pattern and reverse bearish trend

 

Bitcoin faces a critical test as price slides into the $69,000 to $72,000 support zone amid mounting bearish technical signals.

A death cross has formed on daily charts while weekly moving averages remain far overhead. Traders warn that a clean weekly close below this range could trigger a deeper correction phase.

The current price action shows weak bounce attempts with consistent rejections at key resistance levels.

Death Cross Formation Signals Bearish Trend Structure

The technical setup has deteriorated significantly as BTC continues its descent from higher levels. Daily charts now display an active death cross with the 50-day and 200-day moving averages positioned miles above current price. This configuration represents a classic bearish trend structure where rallies meet aggressive selling pressure.

Advertisement

Weekly timeframes confirm the concerning technical picture. Price remains trapped below the exponential moving average ribbon with repeated rejection attempts at that level.

Any upward moves are functioning as retests rather than genuine reversals. Trader @DamiDefi emphasized that pumps are getting sold while supports face continuous stress tests.

The $69,000 to $72,000 band now represents the final line of defense. This zone determines whether the market experiences a temporary shakeout or enters a prolonged correction phase. Price behavior at this level will dictate the trajectory for coming weeks and potentially months.

A breakdown below $69,000 on a weekly closing basis would open the next leg down. The accumulation phase would become considerably more painful before any bullish momentum could rebuild.

Historical patterns suggest that losing major support zones often leads to cascading liquidations and accelerated downside movement.

Support Test Occurs Despite Whale Buying Activity

The bearish price action persists even as on-chain data reveals unusual buying patterns. Binance exchange metrics show a significant increase in average withdrawal sizes during the decline.

Advertisement

The 14-day simple moving average of mean outflows has doubled from approximately 6 BTC on January 28 to 13.3 BTC by February 8.

This withdrawal pattern indicates whale and institutional activity at current price levels. Large entities appear to be accumulating Bitcoin around $69,000 despite the technical deterioration.

The average outflow size represents the highest level recorded since November 2024, according to CryptoOnchain data.

quicktake-image

However, this accumulation has not yet translated into price stability or reversal. The gap between falling prices and rising withdrawal sizes creates a divergence worth monitoring. Smart money appears to be positioning for longer-term gains while accepting near-term downside risk.

Advertisement

Moving coins off exchanges to cold storage traditionally reduces immediate selling pressure. Yet the current market structure suggests this effect remains insufficient to halt the decline.

Bulls need price to reclaim $82,000 first, then push back into the low-to-mid $90,000s to establish a credible bottoming range. Without holding the $69,000 to $72,000 support zone, those recovery targets become increasingly distant possibilities.

 

Advertisement

Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Crypto World

Bitcoin, Ethereum, Crypto News & Price Indexes

Published

on

Bitcoin, Ethereum, Crypto News & Price Indexes

Chainlink co-founder Sergey Nazarov argues the recent crypto market downturn is unlike any previous bear market — there have been no major FTX-style collapses, and tokenized real-world asset (RWA) growth remains substantial.

Market cycles are normal, “but what is important is what those cycles reveal about how far the industry has progressed,” said Nazarov on X on Tuesday. 

Crypto market capitalization has fallen 44% from its October all-time high of $4.4 trillion, with almost $2 trillion exiting the space in just four months.  

Nazarov, however, did not appear concerned, highlighting two primary factors that separate this current bear market from previous ones. 

Advertisement

Unlike previous cycles, such as the FTX and crypto-lending failures in 2022, there haven’t been major institutional collapses during this drawdown, indicating the industry can now handle volatility more reliably, he said. 

“There have been no large risk management failures leading to large institutional failures or widespread systemic risks.”

RWA growth will drive institutions and infrastructure

Secondly, RWA tokenization and on-chain perpetual contracts for traditional commodities continue accelerating regardless of crypto prices, proving this innovation has standalone value beyond speculation.

Tokenized RWA onchain value has increased 300% over the past 12 months, according to RWA.xyz. 

Tokenized RWA onchain value has skyrocketed over the past year. Source: RWA.xyz

This signals that having real-world assets on-chain “is not tightly coupled to cryptocurrency prices but provides its own unique value that can grow irrespective of market pricing of Bitcoin or other crypto assets,” he said.

The surge hasn’t been reflected in the price of Chainlink (LINK), however, with the blockchain oracle and RWA-centric asset tanking 67% since its October peak and down 83% since its 2021 all-time high, trading at a bear-market low below $9 at the time of writing.

Advertisement

Related: Crypto VC Funding Doubled in 2025 as RWA Tokenization Took the Lead

Nazarov also sees other converging trends reshaping the future of crypto. 

On-chain perps and tokenization offer unique value, such as 24/7 markets, on-chain collateral, and real-time data, which is growing steadily. Institutional adoption will be driven by this fundamental utility, and infrastructure demand will surge as complex RWAs require more sophisticated on-chain systems, the Chainlink co-founder said.

“If these trends continue, I believe what I have been saying for years will happen; on-chain RWAs will surpass cryptocurrency in the total value in our industry, and what our industry is about will fundamentally change.”

Not all bear markets are equal 

Bernstein analyst Gautam Chhugani echoed the sentiment in a note on Monday, writing that we are experiencing “the weakest Bitcoin bear case in its history.” 

Advertisement

“The current Bitcoin price action is a mere crisis of confidence. Nothing broke, no skeletons will show up,” analysts led by Chhugani said.

Jeff Mei, chief operating officer at the BTSE exchange, told Cointelegraph that this sell-off is different “in that it was caused largely by non-crypto catalysts.”

Those include fears that a faltering AI tech boom could cause stocks to crash, “compounded by the appointment of Kevin Warsh to Fed chair, who many believe will reduce liquidity in the financial system,” he said. 

Magazine: Bitcoin difficulty plunges, Buterin sells off Ethereum: Hodler’s Digest

Advertisement