Bitcoin (BTC) matched six-month highs on Feb. 21 as it the last attempt to break above $25,000 as support ended in failure.
Bitcoin is unstable before the opening of Wall Street
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair hit $25,250 on Bitstamp.
Next, A firm rejection in the hourly terms sent the pair back below $24,750, holding a trading range throughout the weekend.
With Wall Street on vacation on February 20, bitcoin faced three days of “after hours” trading with less liquidity and more risk of volatile movements both up and down.
To some extent, this was true, since efforts to break the previous week’s highs were short-lived and led to liquidations by both long and short traders, as confirmed by Coinglass data.
Material tracking resource indicators continued to track the source of sudden volatility, which comes in the form of whale traders. on exchanges that try to move the market with massive buying and selling liquidity.
Update on the range set by the Notorious BID#FireCharts shows ask liquidity laddered up to ~$26.5k and it appears liquidity in that range is getting trickled into the active #trading range and replenishing resistance at $25k. Want to see more bids above $24k to retest $25k. pic.twitter.com/RW0MMxCuIl
— Material Indicators (@MI_Algos) February 20, 2023
Update on the range set by the Notorious BID #FireCharts shows buying liquidity up to ~$26,500 and it looks like liquidity in that range is seeping into the active trading range and replenishing resistance at $25,000. I want to see more bids above $24,000 to retest $25,000.
“There are 2,500 BTC in stacked sell orders between the $24,800-25,300 ranges for the BTC/USDT pair”, continuous the popular trader Daan Crypto Trades.
“It could be for three reasons: 1. Actual sell orders. 2. Orders to suppress the price to fill orders before removing them or buying them later. 3. Orders to lower the price.”
He is also a trader Crypto Tony was similarly cautious about the possibility of resistance being breached.
“We are working back around the $25,000 area, but the question remains whether we stay above that resistance zone, or turn aside and turn back down.” said part of the Twitter comment on the day.
Analyst: BTC Price Action Echoes July 2021
In an update of an existing theory, Venturefounder, a contributor to on-chain analysis platform CryptoQuant, predicted that there will be a retest of the lower levels before the bullish continuation for bitcoin.
This was based on market conditions in mid-2021, the year in which the BTC/USD pair produced an all-time “double top” in April and November, respectively.
“BTC’s $25,000 is very close to $31,000 in July 2021,” argument.
“Bitcoin could fakeout it, but will likely retest lower support before consolidating and resuming the uptrend.”
Venturefounder warned that macroeconomic events could end up weakening bitcoin and the crypto space more broadly, which is part of a complex series of predictions from cryptocurrency sources for the new year.
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