Bitcoin (BTC) faced the possibility of breaking down from its trading range as resistance remained strong at the Wall Street open on February 21st.
BTC/USD 1-hour chart. Source: TradingView
Data from Cointelegraph Markets Pro and TradingView showed that BTC was continuously retesting the lowest price levels it had reached in a week. After reaching new 26-month highs of $53,000, Bitcoin experienced immediate selling pressure. Even the anticipation of buyer interest in spot exchange-traded funds (ETFs), which had previously provided support, failed to improve the market sentiment.
In response to this, popular trader Crypto Chase pointed out that Bitcoin was struggling with the so-called fair value gap (FVG) on daily timeframes, as observed from Fibonacci retracement levels. “Looks ugly, but I’ve seen Bitcoin recover from worse,” read part of a commentary on X (formerly Twitter).
Keith Alan, co-founder of trading resource Material Indicators, summarized his latest video update by emphasizing that even ETF inflows could not be relied upon to consistently boost the market. He wrote, “Midway through the week, we are seeing the BTC W candle slip into red territory.”
However, popular trader Daan Crypto Trades called for calm in light of the current situation. “Usually, sentiment follows price. If sentiment precedes price without it actually following through, it’s often a reason to pay attention,” he wrote in a recent X update.
Fellow trader Jelle, known for his optimistic outlook on the market, shared a similar perspective.
Nvidia’s earnings report may lead to a “frothy week”
QCP Capital, a trading firm, attributed the weakness in BTC’s price partly to high funding rates. “Funding at these levels is typically difficult to sustain, which means there could be a pullback in price after such a strong move higher,” they wrote in their latest market update sent to Telegram channel subscribers on that day.
Bitcoin funding rates (screenshot). Source: CoinGlass
QCP also noted that earnings from tech giant Nvidia, which were due after the U.S. market closed, could potentially cause volatility in risk assets. “NVDA is currently trading at 90x P/E and Q4 earnings expectations have been adjusted higher recently,” they explained.
Nvidia (NVDA) 1-week chart. Source: TradingView
Daan Crypto Trades also considered the earnings report to be significant. “If they beat bigly and price just goes up hard, we can prepare for some volatile and frothy next week or two throughout most markets, I think,” read part of his own X forecast.
Please note that this article does not provide investment advice or recommendations. Every investment and trading decision carries risks, and readers should conduct their own research before making any decisions.