Bitcoin trading
The value of Bitcoin approached $22,000 over the weekend, despite warnings from traders and analysts to be wary of an overly negative outlook.
According to TradingView, the value of Bitcoin had minor increases until February 12. After reaching its lowest point in three weeks, it became a favorable investment opportunity for large investors, as explained by Material Indicators, a source of blockchain analysis.
Material Indicators shared a chart from the BTC/USD order book on Binance, showing that resistance has increased. This price increase provides 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 commenter stated that they are ok with this scenario.
Source: Twitter
During the week when Bitcoin hit its lowest levels, some market participants responded with restraint, rejecting the idea of a rapid decline in value.
Filbfilb, the co-founder of DecenTrader, stated that it was too early to talk about a bear market because Bitcoin had yet to test a significant Fibonacci level or moving average after three consecutive increases.
Another well-known trader, Crypto Tony, was also calm about the current price trend. He stated that he was currently a short seller because the price was below the main resistance zone of $22,400 to $22,600.
However, he believed that if the price could hold above $20,300, there could be an opportunity to reach new highs. He concluded that the market structure has not yet shown signs of a downward trend.
“I am bearish as per my updates as we stay below the main resistance zone below $22,400 – $22,600. Overall, I could see another push to the tops if we can hold above $20,300 overall,” he said, sharing the following chart:
source: tradingview, coinbase
The CPI will be a decisive factor in the coming week’s macroeconomic data. As the week draws to a close, some are already anticipating next week’s events, with the Consumer Price Index (CPI) report for January being the most important. The report, which is set to be released on February 14, is among several important releases in the US this month.
CEO and founder of trading firm Eight, Michaël van de Poppe, stated that the coming 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 to, among other things, the decline in gas prices, which will probably drive the market upwards.
Material indicators concurred with this sentiment, stating that they expect continued volatility through the release of the Consumer Price Index (CPI) report on Tuesday.
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Disclaimer: This article was written by Giottus Crypto Exchange as part of a paid partnership with The News Minute. Investments in cryptoassets or cryptocurrency are subject to market risks such as volatility and have no guaranteed return. Do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.
