Bitcoin (BTC) Price Bounce Sparks 90% Profit Surge as Crash Risk to $58,000 Returns
Despite a 9% bounce, Bitcoin faces renewed crash risk to $58,000 due to bearish signals like a bear flag pattern and surging unrealized profits.Summary
Bitcoin's recent 9% price bounce between February 12 and 15 has been met with caution, as market indicators suggest the recovery might be masking increased crash risk. The bounce coincided with a nearly $1.88 billion rise in open interest and strongly positive funding rates, indicating aggressive long positioning. However, this price action occurred within a bear flag pattern, a bearish continuation structure. Furthermore, technical analysis shows a hidden bearish divergence on the 12-hour chart, where price made a lower high while the RSI made a higher high, signaling weakening momentum and a return of sellers. Concurrently, Bitcoin's Net Unrealized Profit/Loss (NUPL) surged by about 90%, suggesting many investors are realizing paper profits, which historically precedes sharp sell-offs, similar to the drop seen after February 4. If Bitcoin breaks the critical support at $66,270, the bearish pattern activates, targeting a potential decline toward the $58,880 zone.
(Source：BeInCrypto)