Bitcoin created sudden volatility with a classic fakeout at the opening of Wall Street on February 20, catching investors off guard. Data from TradingView showed Bitcoin’s price momentarily surpassing $53,000 before facing rejection. The BTC/USD pair gave back all of its gains for the day within less than two hours, bottoming out at $51,400, marking a strong rejection.
What’s Happening on the Bitcoin Front?
Bitcoin futures open interest, a classic factor of volatility, remained above $22.5 billion, according to data from blockchain analytics platform CoinGlass, despite reaching the highest levels in 26 months at the start of the week.
In response to the failed attempt to surpass the $53,000 level, popular investor Jelle advised his X subscribers to stay away from the markets.
Michael van de Poppe, founder and CEO of trading firm MNTrading, commented on the situation:
“The trend continues to be upward. This doesn’t mean we are experiencing a one-way upward trend,”
Like other analysts, van de Poppe also referred to inflows into spot Bitcoin exchange-traded funds (ETFs), which resumed activity on February 20th after a public holiday in the United States. As ETF funds accumulated Bitcoin, its value increased, and some investors entered these funds before Wall Street opened, aiming to benefit from the potential rise. Van de Poppe further stated:
“Similarly, ETF inflows will not push Bitcoin’s price to $100,000 in 2 months. Corrections will happen, and with the current sentiment, they will be sharp and short-lived.”
Key Details About Bitcoin
According to the Crypto Fear & Greed Index, greed is currently characterizing the collective mood among crypto investors. The Index recently reached its greediest level since just before Bitcoin hit its all-time high of $69,000 in the fourth quarter of 2021.
With all these developments, an encouraging case of déjà vu is signaling further rises in Bitcoin prices, historically a correct indicator of a bull market. As Caleb Franzen, senior market analyst at Cubic Analysts, noted, the Williams %R Oscillator is replicating behavior seen just before Bitcoin first surpassed $20,000 at the end of 2020. A successful support retest shared during the day indicates a potential continuation.
