Bitcoin (BTC) rallied back above $24,000 at the Wall Street open on Feb. 17 as analysis favored “consolidation and continuation” to the upside.
Bitcoin faces a key level to “break” the downtrend
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair recouped some losses overnight after falling to $23,369 on Bitstamp.
The day before, the pair had hit fresh six-month highs, which were met with stiff resistance in the form of two weekly moving averages (MAs) and a strong wall of sell.
Scott Melker, the operator and podcast host known as “The Wolf of All Streets,” stressed the importance of levels acting as lines in the arena for bulls.
“$25,212. I’ve been yelling about this number for weeks. A break above (ideally close) makes a higher high for the first time since $69,000,” tweeted on the weekly chart on February 16.
“That breaks the downtrend. It just touched it, to the penny…and it’s down in the short term. Time to pay attention!”
Investigating activity on exchanges and tracking indicators from Material Indicator have revealed that bidding support is rising, dragging down the spot price.
“The notorious BTC buy wall that we have been tracking for 5 weeks has just moved strategically again, this time just above the 21-day moving average,” pointed next to a graph.
“This entity seems to be playing with every single technical level.”
Data from the Binance order book for the BTC/USD pair also showed resistance as low as $25,600, well above the 200-week MA, which turned from support to resistance last August.
One trader says crucial support at $22,800
For his part, Michaël van de Poppe, a Cointelegraph contributor, was optimistic about the prospects and advocated by “consolidation and continuation”.
“Bitcoin swings to the top and pulls back from a bit there, but that doesn’t mean we’re going to drop to $12,000,” he reasoned in a tweet that day.
a graph frame $22,800 as the key area for bulls to hold should the BTC/USD pair opt to set a higher low (HL) now.
The day before, van de Poppe argument that the period from March to June should be a “holiday” in all cryptocurrency markets.
“It’s hard to define a proper strategy when everyone around you is saying otherwise. That’s what’s happening on those relief rallies.” continued about the current state of sentiment in the crypto market.
“People are stuck in the mindset of the last 18 months and can only wait for more dips. Hence they keep shorting.”
However, it was long-term traders who suffered the most on Feb. 16, as Bitcoin’s crash led to the liquidation of $45 million in positions, according to data from Coinglass. Cross-liquidations of long cryptocurrency positions almost reached $125 million.
The views, thoughts and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.