Bitcoin is hovering around $68,500 as traders brace for possible volatility around Chinese New Year.
This holiday has, at times, lined up with short-term swings in crypto markets. Some traders believe investors in Asia reduce positions before the holiday to free up cash, which can create temporary selling pressure.
But it’s not a guaranteed pattern.
In some years, Bitcoin dipped before Lunar New Year. In other years, it rallied soon after. And today’s crypto market is far more global than it used to be. It’s unlikely that one regional holiday alone can control the entire market.
Retail Investors Are “Buying the Dip”
There’s another factor in play.
Coinbase CEO Brian Armstrong recently said retail investors are stepping in and “buying the dip.”
According to his data, retail Bitcoin and Ethereum balances on Coinbase in February are equal to — or even higher than — December levels. That suggests many long-term holders are accumulating instead of panic selling.
If that continues, it could soften any short-term holiday-related weakness.
What the Charts Are Saying
From a technical standpoint, Bitcoin is still under pressure.
On the daily chart, BTC remains below its 50-day simple moving average near $83,900. That signals the short-term trend is still bearish.
Since peaking in the mid-$90,000 range in January, Bitcoin has formed a series of lower highs — a classic sign of a cooling trend.
The Relative Strength Index (RSI) is around 35. It has bounced from deeply oversold levels near 20 earlier this month. That means selling pressure has eased, but it doesn’t confirm a full trend reversal yet.
Key levels to watch:
- Support sits around $65,000.
- Stronger support lies between $60,000 and $62,000, where a sharp sell-off happened earlier in February.
- Resistance is near $72,000.
- A heavier resistance zone stands between $76,000 and $80,000.
If Bitcoin drops below $65,000, the door could open for another move toward $60,000.
On the other hand, a strong break above $72,000 would be the first real sign that buyers are taking control again — no matter what seasonal theories say.
For now, Bitcoin is sitting in the middle, waiting for its next clear move.
