The value of Bitcoin approached $22,000 during the weekend, despite warnings from traders and analysts to be wary of excessive negative outlooks.
According to TradingView, the value of Bitcoin had minor increases up until February 12th. After reaching its lowest point in three weeks, it became a favorable investment opportunity for large investors, as explained by Material Indicators, a source for blockchain analysis.
Material Indicators shared a chart from the BTC/USD order book on Binance, showing that resistance has increased. This hike in price presents a better opportunity for large investors to sell. The accompanying commentary stated that, according to FireCharts, some large investors appear to be taking advantage of the lack of liquidity in the Bitcoin market to sell at a higher price. The commentator stated that they are okay with this scenario.
Source: Twitter
During the week when Bitcoin reached its lows, some market participants responded with moderation, rejecting the idea of a rapid decrease in value.
Filbfilb, the co-founder of DecenTrader, stated that it was premature to talk about a bear market because Bitcoin had not yet retested a significant Fibonacci level or moving average after three consecutive rises.
Another well-known trader, Crypto Tony, was also calm about the current price trend. He stated that he was currently short-selling because the price was below the main resistance zone of $22,400 to $22,600.
However, he believed that if the price could stay above $20,300, there could be a possibility of reaching new highs. He concluded that the market structure has not yet shown signs of a downward trend.
“I am short as per my updates while we reside below the main resistance zone below $22,400 – $22,600. Overall I could see another tap of the highs if we can hold above $20,300 overall,” he said, and shared the following chart:
source: tradingview, coinbase
CPI will be a crucial factor in the upcoming week’s macroeconomic data. As the week comes to a close, some are already anticipating next week’s events, with the Consumer Price Index (CPI) report for January being the most significant. The report, which is set to be released on February 14th, is among several important releases in the United States this month.
The CEO and founder of trading firm Eight, Michaël van de Poppe, stated that the upcoming week would be crucial, with key reports, including retail sales, the Empire State Manufacturing Index, and the Producer Price Index expected to be released.
He believes that there will be a sharp decline in inflation due in part to the decrease in gas prices, which will likely drive the market upward.
Material Indicators concurred with this sentiment and stated that they anticipate continued volatility through the release of the Consumer Price Index (CPI) report on Tuesday.
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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.
