Bitcoin sees another $25,000 rejection as pre-Wall Street volatility returns
Bitcoin (BTC) matched six-month highs on February 21 when the latest attempt to turn $25,000 into support ended in failure.
Bitcoin Unsettled Before Wall Street Open
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $25,250 on Bitstamp.
A firm rejection on hourly timeframes then saw the pair return below $24,750, holding a trading range in place through the weekend.
With Wall Street on vacation on February 20, Bitcoin faced three days of “after-hours” trading with thinner liquidity and greater risk of volatile moves both up and down.
These occurred to some extent, with attempts to beat last week’s highs being short-lived and resulting in liquidations by both long and short traders, Coinglass data confirms.
Monitoring Resource Material Indicators continued to track the source of flash volatility, this came in the form of whale traders on exchanges attempting to move the market with mass buying and selling liquidity.
“2500 BTC in sell orders stacked between $24.8-25.3K on the BTC/USDT pair,” popular trader Daan Crypto Trades continued.
“It can be for three reasons: 1. Actual sell orders. 2. Orders to suppress the price to fill orders before withdrawing them or buying them later. 3. Orders to reduce the price.”
Fellow trader Crypto Tony was also cautious about the potential for resistance to be overcome.
“We’re grinding $25,000 again here, but the question remains whether we hold above the resistance zone, or deviate and come back down,” part of the Twitter commentary on the day tired.
Analyst: BTC Price Action Reflects July 2021
In an update to an existing theory, Venturefounder, a contributor to the chain analysis platform CryptoQuant, predicted a retest of lower levels before continuation upwards for Bitcoin.
Related: Bitcoin faces do-or-die weekly, monthly tight with macro trend at stake
He based this on market conditions from mid-2021, the year in which BTC/USD produced a “double top” all-time high in April and November respectively.
“$25k BTC is very similar to $31ki July 2021,” he argued.
“Bitcoin could break above it in a ‘Fakeout’ but likely retest lower support before consolidating and continuing to the uptrend.”
The venture founder warned that macroeconomic events could end up weakening Bitcoin and crypto more broadly – part of a complex series of predictions from crypto sources for the coming year.
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