Bitcoin (BTC) faced the threat of breaking down from its trading range as resistance remained strong during the Wall Street open on February 21st.
BTC/USD 1-hour chart. Source: TradingView
Data from Cointelegraph Markets Pro and TradingView showed that BTC continued to retest the lowest price levels seen in a week. After reaching new 26-month highs of $53,000, Bitcoin experienced immediate selling pressure. Even the anticipated buyer interest in spot exchange-traded funds (ETFs), which are often a source of support, failed to improve the market sentiment.
Popular trader Crypto Chase pointed out that Bitcoin was grappling with the fair value gap (FVG) on daily timeframes, as seen from Fibonacci retracement levels. Despite the challenging situation, he expressed optimism, stating, “Looks ugly, but I’ve seen Bitcoin recover from worse.”
Keith Alan, co-founder of trading resource Material Indicators, emphasized in his latest video update that even ETF inflows should not be solely relied upon to boost the market. He noted that the BTC W candle was slipping into the red territory midway through the week.
However, popular trader Daan Crypto Trades urged for calm, highlighting that sentiment usually follows price. If sentiment precedes price without any actual follow-through, it should be a reason to pay attention.
Another optimistic trader, Jelle, shared a similar perspective on the current market situation.
The trading firm QCP Capital attributed the weakness in BTC’s price to high funding rates. It explained that funding at these levels is typically difficult to sustain, suggesting the possibility of a price pullback after a strong upward move. QCP also mentioned that earnings from tech giant Nvidia, scheduled after the U.S. market close, could introduce additional volatility to risk assets.
Daan Crypto Trades also emphasized the significance of Nvidia’s earnings report. If they exceed expectations and lead to a significant price increase, it could result in a volatile and frothy market in the following weeks.
Please note that this article does not provide investment advice or recommendations. It is essential to conduct personal research before making any investment or trading decisions.