Bitcoin (BTC) approached $22,000 over the weekend as traders and analysts urged caution amid excessively bearish sentiment.
Analyst dismisses crypto “hysterical” sentiment
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair saw small gains on Feb. 12.
After hitting three-week lows the week before, Bitcoin was a target for opportunistic whales, explained on-chain analysis resource Material Indicators.
Uploading a chart of the BTC/USD order book on Binance, Material Indicators captured resistance moving higher, with the potential rally in the spot price offering a more advantageous sell level for high-volume players.
“FireCharts shows that Crypto Weekend whales seem interested in trying to exploit bullish illiquidity in the Bitcoin order book to sell higher. Personally, it seems good to me,” read part of the comments that accompanied the message.
Meanwhile, the lows for the week saw subdued reactions from market participants, some of whom rejected calls for a massive capitulation event any time soon.
“CT hysterical about bear market when BTC hasn’t retested a major fib or moving average that broke after 3 waves”, argument Filbfilb, co-founder of DecenTrader trading suite, on the day.
Popular Crypto trader Tony was similarly calm on the current price action.
“I am short based on my updates as we reside below the major resistance zone below $22,400-$22,600. Overall, I could see another touch of the highs if we can sustain above $20,300 overall.”, reasoned.
“The market structure hasn’t broken down yet.”
The IPC leads an important week of big data
Before the weekly close, others were already focusing on next week’s macroeconomic data as a potential catalyst for volatility.
The January Consumer Price Index (CPI), due to be released on February 14, is the main event to be released this month in the United States.
“We have a great week ahead of us,” summarized Michaël van de Poppe, Cointelegraph contributor and founder and CEO of trading firm Eight, noting retail sales, the Empire State Manufacturing Index and the Producer Price Index to be released later in the week.
“Inflation is likely to continue to fall, and sharply, in my opinion. Gasoline prices have also gone through the roof, and this fall -> markets are up”he added.
Material Indicators agreed, saying it was “Expecting volatility to continue until Tuesday’s CPI report.”
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