Bitcoin (BTC) edged closer to $22,000 over the weekend as traders and analysts urged caution on overly bearish sentiment.
BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView
Analysts dismiss “hysterical” crypto sentiment
Data from Cointelegraph Markets Pro and TradingView shows that BTC/USD saw a slight uptick on February 12.
On-chain analytics resource Material Indicators reported that bitcoin was a target for opportunistic whales after hitting three-week lows a week ago.
Uploading a chart from the BTC/USD order book on Binance, material indicators have taken resistance higher, with a potential rise in spot prices offering more profitable sell levels for players with large volumes.
“Firecharts suggest that crypto weekend whales are interested in trying to exploit the upper illiquidity in the bitcoin order book to sell higher. Personally, I am fine with that,” the accompanying comments read.
BTC/USD order book data (Binance). Source: Material Indicator/Twitter
Meanwhile, the week’s lower levels saw a moderate reaction from market participants, with some resisting calls for a massive surrender event on the lower time frame.
Filbfilb, co-founder of Trading Suite Disenter, said, “Frenzy whistles about bears when BTC has not retested a key Fib or moving average that was broken after 3 waves.” argued Same day
Popular trader Crypto Tony was equally calm on the current price action.
“I am short per my update while we remain below the key resistance area below $22,400 – $22,600. Overall I could see another tap higher if we can hold above $20,300 Am.” Argument,
“The market structure hasn’t broken to the downside yet.”
BTC/USD annotated chart. Source: Crypto Tony / Twitter
CPI leads the week with important macro data
Ahead of the weekly close, others were already focusing on next week’s macroeconomic data as the next potential volatility catalyst.
Related: Bitcoin Already in Its ‘Next Bull Cycle’ – Pantera Capital
The Consumer Price Index (CPI) print for January constitutes one of several major events in the United States, this one due on February 14.
“We have a big week ahead of us,” said Cointelegraph contributor Michael van de Poppe, founder and CEO of trading firm Eight. AbbreviationAlso taking into account retail sales during the week, the Empire State Manufacturing Index and the Producer Price Index (PPI).
“My view is that we may see inflation continue to decline and decline sharply. Gas prices are also falling like a stone, and this decline -> the market is up,” he said.
Content Indicators agreed, saying that “volatility is expected to continue through Tuesday’s CPI report.”
Consumer Price Index (CPI) chart. Source: Bureau of Labor Statistics
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