Bitcoin (BTC) witnessed a return to the center of its intraday trading range leading up to the weekly close on February 18, as bullish investors took advantage of weekend trading opportunities.
Bitcoin’s price consolidation was centered around the $52,000 mark, according to data from Cointelegraph Markets Pro and TradingView. The cryptocurrency experienced a dip to $50,680 on Bitstamp the day before, marking its lowest levels in several days. However, it quickly rebounded and gained nearly $1,500 in just a few hours. As of the time of writing, the lows had not been retested.
Trader Skew noted a change in trader behavior during the latter half of the Wall Street trading week. Spot buying decreased towards the weekend, with most dips and bounces being driven by takers. However, Skew observed a return of spot buyers, with Binance spot leading the way.
The record-breaking open interest (OI) of $6.8 billion on CME Group’s Bitcoin futures markets indicated forthcoming volatility, according to data from CoinGlass.
Trader Daan Crypto Trades also discussed open interest, specifically when denominated in BTC. He considered the +100% rally since October to be healthy in terms of leverage.
Skew emphasized the importance of preserving upward momentum in Bitcoin’s relative strength index (RSI) on 4-hour timeframes leading up to the weekly close. He also highlighted the significance of the 21-period exponential moving average (EMA) at $51,500. Binance’s spot flows around the $52,000 to $53,000 area showed notable spot selling into bounces, which is often a result of profit-taking.
Matthew Hyland, another trader and analyst, identified $49,000 as a critical level to protect for the weekly close.
It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.