bitcoin Reaching a six-month high on February 21, it failed in its latest move to break $25,000.
Pre-Wall Street Bitcoin Is Quite Tense
Koinfinans.com As we reported, according to TradingView’s BTC/USD data, the price went up to $25,250. Afterward, the price, which was severely rejected on hourly timeframes, bounced back below $24,750 and maintained an in-place trading range over the weekend.
Wall StreetWith Bitcoin going on holiday on Feb. 20, Bitcoin faced three days of “out of hours” trading where liquidity was reduced and the risk of volatility, both up and down, increased.
According to data from Coinglass, efforts to surpass the previous week’s highs did not take long. As a result, it resulted in the liquidation of both long and short traders.
The Material Indicator, on the other hand, shows that whales on exchanges are trying to activate the market with mass buying and selling liquidity. This means instant volatilities in the market. creating.
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
Popular trader Daan Crypto Trades commented, “2500 BTC sell orders have piled up between $24,800-25,300 in the BTC/USDT pair.”
There can be three reasons for this: 1. Actual sell orders. 2. Price suppression orders to fill orders before withdrawing orders or buying later. 3. Orders to drive down the price.
Crypto Tony is equally wary of the potential to break through resistance.
Here we are grinding $25,000 once again, but the question is will we stay above this resistance zone or will we diverge and come back?
On-chain analytics platform CryptoQuantIn an update on an existing theory, Venturefounder, a contributor, predicted that lower levels would be retested before continuing upwards for Bitcoin.
He based it on market conditions in mid-2021, when BTC/USD hit all-time highs in April and November, respectively.
25,000 BTC is very similar to $31,000 in July 2021. Bitcoin could break above this with a ‘Fakeout’, but it will likely retest lower support before consolidation and continue the uptrend.
Venturefounder warned that macroeconomic events could weaken Bitcoin and crypto more broadly.