Bitcoin sees renewed rejection from $25,000 as volatility returns ahead of Wall Street
Bitcoin sees renewed rejection from $25,000 as volatility returns ahead of Wall Street
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Bitcoin (BTC) hit a six-month high on Feb. 21 as a recent attempt to flip $25,000 for support failed.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
Bitcoin unclear before Wall Street opens
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hit $25,250 on Bitstamp.
A firm rejection of the hourly timeframes then saw the pair return below $24,750 and maintained a range throughout the weekend.
As Wall Street went on vacation on Feb. 20, Bitcoin faced three days of “off-hours” with less liquidity and a higher risk of volatile ups and downs.
These have materialized to some degree, with efforts to surpass last week’s highs short-lived, leading to liquidation from both long and short traders, data from Coinglass confirms.
BTC liquidation chart. Source: coin jar
Monitoring resource material indicators continued to track the source of flash volatility, which emerged in the form of whale traders on exchanges attempting to move the market with bulk bid-and-ask liquidity.
Updated range set by Notorious BID#Firediagrams shows that the ask liquidity has surged up to $26.5k and it appears that liquidity is moving into the active area in this area #Trade Reach and fill in resistance at $25,000. Want to see more bids over $24,000 to retest $25,000. pic.twitter.com/RW0MMxCuIl
— Material Indicators (@MI_Algos) February 20, 2023
“2500 BTC in sell orders piling up on the BTC/USDT pair between $24.8 and $25.3k,” popular trader Daan Crypto Trades continued.
“Could be for three reasons: 1. Actual sell orders. 2. Orders to suppress the price to fill orders before they are drawn or bought later. 3. Orders to lower the price.”
BTC/USDT order book data (Binance). Source: Daan Crypto Trades/ Twitter
Fellow trader Crypto Tony was also cautious on the potential for clearing resistance.
“We’re grinding $25,000 again here but the question remains whether we stay above this resistance zone or deviate and come back down,” is part of the Twitter commentary of the day specified.
Analyst: BTC Price Action Reflecting July 2021
In an update to an existing theory, Venturefounder, a contributor to on-chain analytics platform CryptoQuant, predicted a retest of lower levels before Bitcoin’s bullish move resumes.
Related: Bitcoin faces weekly monthly close with macro bull trend at stake
He relied on market conditions from mid-2021, the year that BTC/USD hit a “double top” all-time high in April and November respectively.
“$25,000 BTC is very similar to $31,000 in July 2021,” he said argued.
“Bitcoin could go beyond in a ‘fakeout’ but likely to retest lower support before consolidation and return to uptrend.”
Annotated BTC/USD chart. Source: Venturefounder/ Twitter
Venturefounder warned that macroeconomic events could cause Bitcoin and crypto more generally to weaken – part of a complex set of predictions from crypto sources for the year ahead.
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.
