Bitcoin (BTC) edged closer to $22,000 over the weekend as traders and analysts urged caution on overly bearish sentiment.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Analyst dismisses “hysterical” crypto sentiment
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD seeing small spurts higher into Feb. 12.
After hitting three-week lows the week prior, Bitcoin was a target for opportunistic whales, on-chain analytics resource Material Indicators explained.
Uploading a chart from the BTC/USD order book on Binance, Material Indicators captured resistance shifting higher, with the potential uptick in spot price offering a more advantageous selling level for large-volume players.
“FireCharts shows Crypto Weekend whales seem interested in trying to exploit the upside illiquidity in the Bitcoin order book to sell higher. Personally, I’m fine with that,” part of the accompanying comments read.
BTC/USD order book data (Binance). Source: Material Indicators/ Twitter
The week’s lows meanwhile saw moderate reactions from market participants, some of whom pushed back against calls for a mass capitulation event on short timeframes.
“CT hysterical about bear market when BTC hasn’t retested a major fib or moving average which were busted after 3 waves up,” Filbfilb, co-founder of trading suite DecenTrader, argued on the day.
Popular trader Crypto Tony was similarly cool on current price action.
“I am short as per my updates while we reside below the main resistance zone below $22,400 – $22,600. Overall i could see another tap of the highs if we can hold above $20,300 overall,” he reasoned.
“Market structure is not yet broken to the downside just yet.”
BTC/USD annotated chart. Source: Crypto Tony/ Twitter
CPI leads important macro data week
Ahead of the weekly close, others were already focusing on next week’s macroeconomic data as the next potential volatility catalyst.
Related: Bitcoin is already in its ‘next bull market cycle’ – Pantera Capital
The Consumer Price Index (CPI) print for January, due on Feb. 14, forms the headline event out of several in the United States this month.
“Big week ahead of us,” Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, summarized, noting retail sales, Empire State Manufacturing Index and Producer Price Index due during the week.
“My thoughts are that we’re likely to see inflation continue to fall and fall steeply. Gas prices have been dropping like a stone also, and this drop -> markets up,” he added.
Material Indicators agreed, saying it was “Expecting volatility to continue through Tuesday’s CPI Report.”
Consumer Price Index (CPI) chart. Source: Bureau of Labor Statistics
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