According to recent insights from COINOTAG News on February 12th, market analyst Adam from Greeks.live highlights a prevailing bearish sentiment among traders, prompting a notable unwinding of long positions. The focus is primarily on the critical $95,000 support level, which faced testing overnight. A breach below this level, particularly within the $92,000 to $94,000 range, could trigger substantial sell-offs, intensifying market volatility.
Current market indicators reflect short-term fragility, characterized by a decrease in trading volume and low volatility, oscillating between 45% and 48%. This environment complicates options trading. Interestingly, a substantial buy order for 900 bitcoins was detected at the prevailing price point, coupled with a “price vacuum” extending to $98,000, indicating the potential for rapid price movement.
Traders appear to be adjusting their strategies ahead of forthcoming CPI data, with noticeable shifts in options trading. Many are recalibrating strike prices for call options from $100,000 to $97,000 and closing put options at $95,000. Amid these dynamics, selling pressure persists, particularly in perpetual contracts, although signs of short covering have emerged, potentially setting the stage for a reversal in the lead-up to the CPI release.