Bitcoin’s Comeback at Wall Street Open
On February 17, Bitcoin (BTC) made a fashionable entrance at the Wall Street open, strutting above the $24,000 mark. It seems the crypto community has chosen to favor ‘consolidation and continuation’ in the face of a volatile market. The day had started with a dip to $23,369, but Bitcoin proved resilient, bouncing back like a rubber band. It’s almost as if it’s saying, “Not today, market bears!”
Resistance and Key Levels: The Bullish Battle
According to data sourced from market analysis platforms, Bitcoin had recently hit six-month highs. However, crossing that psychological barrier proved challenging with two weekly moving averages (MAs) as formidable foes and a heavy sell wall looming like a bad odor at a crowded subway station. Scott Melker, a seasoned trader nicknamed “The Wolf Of All Streets,” didn’t mince words about the critical level: $25,212. He’s been waving that number like a flag for weeks, and for good reason!
The “Bear Trap” Escape Route
Melker made it clear that breaking above the $25,212 mark could change the game by making a higher high for the first time since Bitcoin’s previous peak at $69,000. That would signify a robust escape from the bear trend. If it weren’t for the pesky resistance, it might have just managed it!
Spot Price: Bid Support That Keeps on Giving
Meanwhile, taking cues from the showy antics of market activities, Resource Material Indicators highlighted an uptick of bid support, mirroring the rise in spot price like a synchronized swimming routine. This rise was attributed to a “notorious BTC buy wall,” which strategically moved just above the 21-Day Moving Average. It’s a sight to behold, a carefully choreographed performance by this market entity.
Resistance Levels: Climbing the Crypto Mountain
Further complicating the scene, Binance’s BTC/USD order book displayed a resistance ladder stretching up to $25,600. That’s right – Bitcoin has a mountain to climb, one that peaks above the 200-week MA, which unfortunately flipped from support to resistance last August. C’mon Bitcoin, you got this!
Keeping an Eye on Support Levels
In a silver lining exchange, Michaël van de Poppe also stirred the pot with bullish sentiments, pointing toward a potential consolidation phase. The critical area for Bitcoin to maintain is $22,800, serving as a cushion should BTC decide to make a higher low next. Who knew a number could wield so much power?
The Crypto Party from March to June
Van de Poppe suggested an upcoming “party” in crypto markets from March to June—a time when traders might want to trade their bear costumes for party hats. However, he did highlight the tricky market sentiment clouding the waters. With many stuck in a bearish mindset, shorting remains the go-to strategy, producing cringe-worthy results in recent liquidation events. A whopping $45 million worth of long positions were liquidated on February 16 alone!
Final Thoughts: Eyes on the Prize
The cryptocurrency market is on a wild ride, and while the bears lurk in the shadows, Bitcoin has shown that it can bounce back when least expected. Keep your eyes peeled for those bullish signals as the crypto landscape continues to unfold—who knows what the next week will bring!
