Key Insights:
- Bitcoin price risked its longest monthly decline in seven years.
- $9.37B shorts face liquidation on a 20% upside move.
- The Binance buying power ratio hit cycle lows.
Bitcoin price hovered around $68,000 on Feb. 22 as traders assessed mounting pressure across derivatives and spot markets. Coin Bureau warned that if February closed in the red, the asset would log its longest run of consecutive monthly declines in seven years.
The setup formed amid miner treasury shifts, liquidation clusters, and weakening exchange buying power.
The broader market context framed Bitcoin price at a technical crossroads. February’s performance mattered because extended losing streaks historically shaped medium-term sentiment cycles. Traders watched positioning metrics closely as volatility compressed near a key range.
Bitcoin Price Faces Liquidation Pressure on Both Sides
Ted Pillows calculated that $9.37 billion in short positions would be liquidated if Bitcoin’s price pumped by 20%. The same data showed $2.24 billion in longs would unwind on a similar downside move. That imbalance reflected the uneven distribution of leverage across exchanges.
KillaXBT argued that Bitcoin cycles were compressing, with new all-time highs forming faster after prior bottoms. He suggested institutional participation accelerated upside phases rather than downtrends. That thesis implied volatility clusters could resolve upward once leverage cleared.
Price action reflected hesitation rather than panic. Despite geopolitical tensions and selling tied to Garrett Bullish activity, Bitcoin price held above the $65,000–$66,000 zone. Ted Pillows stated that a sustained hold could open the path toward $72,000, framing the range as tactical support.
Binance Buying Power Echoed 2024 Setup
Crazzyblockk pointed to Binance’s 90-day Buying Power Ratio falling to -0.086, marking its lowest reading in over a year. The last comparable level appeared during July–August 2024, when Bitcoin traded between $54K and $68K before rallying toward $102,000 by December. That historical parallel suggested capital compression rather than structural exit.
Short-term data painted a sharper stress. The 7-day ratio fell to -0.90 in mid-February, signalling acute selling pressure across the exchange. Yet the 30-day ratio rebounded from -0.164 to near flat within days, indicating stabilization at shorter intervals.
The 365-day ratio remained positive at +0.038, implying structural demand had not broken. That longer-term balance mattered because sustained negative readings historically preceded deeper bear phases. Instead, the current profile resembled exhaustion behavior inside a consolidation band.
Miner Treasury Moves Shifted Capital Allocation
Coin Bureau reported that Bitdeer sold all its Bitcoin holdings, offloading 943.1 BTC from reserves and 189.8 newly mined coins. The sale reduced its balance to zero as management redirected capital toward data center expansion and artificial intelligence cloud infrastructure. That decision reflected operational funding priorities rather than directional conviction.
Miner selling historically pressured short-term supply dynamics. However, treasury liquidations did not automatically translate into sustained price declines. Market impact depended on liquidity absorption and derivatives positioning at the time of sale.
Institutional infrastructure expansion continued despite treasury reductions. Firms are increasingly diversifying revenue streams into artificial intelligence compute services. That shift signalled a broader reallocation of capital within the mining sector.
Bitcoin price now faces a compressed decision point into the month-end. A February close below January would confirm the seven-year losing streak metric cited earlier. Traders will monitor whether the price sustains above the $65,000–$66,000 band or tests the upper boundary near $72,000 next week.