Bitcoin (BTC) matched its six-month highs on Feb. 21 as the latest attempt to convert $25,000 into support failed.
Bitcoin Unsettled Before Wall Street Opened
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD reached $25,250 on Bitstamp.
A firm rejection on hourly timeframes saw the pair bounce back below $24,750, maintaining a trading range throughout the weekend.
With Wall Street on Feb. 20, Bitcoin faced three days of “out-of-hours” trading with thinner liquidity and more risk of volatile moves up and down.
These came to fruition to some extent, with attempts to beat last week’s highs being short-lived, resulting in liquidations from both long and short traders, data from Coinglass confirms.
Source Monitoring Material indicators continued to track the source of sudden volatility, in the form of whale traders on exchanges attempting to move the market with massive bid and offer liquidity.
“2500 BTC in sell orders stacked between $24.8 and 25.3K on the BTC/USDT pair,” popular trader Daan Crypto Trades continued.
“This can be for three reasons: 1. Actual sales orders. 2. Orders to suppress the price to fulfill orders before they are later taken in or bought. 3. Orders to lower the price.”
Fellow Crypto trader Tony was similarly cautious about the potential for overcoming resistance.
“We’re making $25,000 here again, but the question remains, will we stay above that resistance zone, or will we veer off and come back down,” part of a Twitter comment mention.
Analyst: BTC price action following July 2021
In an update to an existing theory, Venturefounder, a contributor to the on-chain analytics platform CryptoQuant, predicted a lower-level retest before moving forward with Bitcoin.
Related: Bitcoin faces do-or-die weekly, monthly close with macro bull trend at stake
He based this on market conditions from mid-2021, when BTC/USD reached an all-time “double top” in April and November respectively.
“$25,000 BTC is very similar to $31,000 in July 2021,” he said argued.
“Bitcoin May Go Above in a ‘Fakeout,’ But Likely to Retest Lower Support Before Consolidation and Resume Uptrend.”
Venture founder warned macroeconomic events could weaken Bitcoin and crypto more broadly – part of a complex series of predictions of crypto resources for the coming year.
The views, thoughts and opinions expressed here are those of the authors only and do not necessarily reflect or represent the views and opinions of Cointelegraph.