BTC price spikes to $53K but resistance catches up with Bitcoin bulls
Bitcoin ( BTC ) spawned flash volatility at the Feb. 20 Wall Street open as a classic “fakeout” burned traders.
Bitcoin sellers quickly snuff out $53,000 push
Data from Cointelegraph markets Pro and TradingView followed BTC price action as it briefly pierced $53,000 before rejecting.
That rejection was strong, with BTC/USD giving back its entire day’s gains in under two hours, bottoming at $51,400.
At the time of writing, a modest recovery saw $51,700 as the focus.
Bitcoin futures open interest, a classic volatility catalyst, which hit its highest levels in 26 months at the start of the week, remained at over $22.5 billion, per data from CoinGlass .
Reacting to the failed attempt to breach $53,000, popular trader Jelle told X subscribers to zoom out.
And just like that, the lower-timeframe charts do not look very exciting anymore.
— Jelle (@CryptoJelleNL) February 20, 2024
You have two options:
- Choose to let the LTF chart shake you out
- Ignore the noise, and stick to your long term plan.
What's it going to be? #Bitcoin pic.twitter.com/uGNfn3LV60
“The trend remains to be upwards. This doesn't mean that we are having an upwards trend in one-go,” Michaël van de Poppe, founder and CEO of trading firm MNTrading, continued .
Like others, Van de Poppe referenced inflows to the spot Bitcoin exchange-traded funds (ETFs), which due to a public holiday in the United States only reopened for business on Feb. 20.
As Cointelegraph reported , Bitcoin has gained as the ETFs accrue BTC, with some traders adding exposure ahead of the Wall Street open in an attempt to capitalize on potential upside as a result.
“Similarly, the ETF inflow isn't going to push #Bitcoin's price to $100K in 2 months,” Van de Poppe nonetheless reasoned.
“Corrections do happen and with the current sentiment, they'll be nasty and short-lived.”
Per data from the Crypto Fear Greed Index , “greed” is what currently characterizes the mood among crypto traders en masse. As Cointelegraph noted , the Index recently hit its most “greedy” since just before Bitcoin hit its $69,000 all-time highs in Q4 2021.
Analyst's "favorite" BTC price metric channels 2020 breakout
In an encouraging case of deja vu, meanwhile, a historically accurate bull market indicator is giving fresh signals that more BTC price upside is due.
Related: Ethereum (ETH) price hits $3K for the first time since 2022
As noted by Caleb Franzen, senior market analyst at Cubic Analysts, the Williams%R Oscillator is repeating behavior seen just before Bitcoin first broke through $20,000 in late 2020.
A support retest looks to have been successful, he shared on X on the day, paving the way for potential continuation.
#Bitcoin just completed an A→B→C thrust for the 2-year Williams%R Oscillator (one of my favorite $BTC indicators).
— Caleb Franzen (@CalebFranzen) February 20, 2024
A: break above overbought
B: fall below overbought
C: break above point A
The last time this happened was in October 2020, before price gained +390% in 6 months. pic.twitter.com/i5yjvQ2yGb
As Cointelegraph reported, Franzen also used the oscillator as the basis for calling the end of the 2022 bear market .
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