Bitcoin bulls encounter resistance after BTC price surges to $53K

Bitcoin (BTC) caused sudden volatility in the Wall Street market on February 20, resulting in a “fakeout” that burned traders. The price briefly reached $53,000 before being rejected and giving back its gains, hitting a low of $51,400 in just two hours. Currently, there is a modest recovery at $51,700. Bitcoin futures open interest, a catalyst for volatility, reached its highest levels in 26 months at the beginning of the week, standing at over $22.5 billion. Traders reacted to the failed attempt to breach $53,000 by reminding investors to zoom out and look at the bigger picture. Michaël van de Poppe, founder and CEO of trading firm MNTrading, emphasized that the overall trend is still upward, despite short-term fluctuations. He also mentioned the inflows to Bitcoin exchange-traded funds (ETFs), which have contributed to the recent gains in Bitcoin’s price. However, van de Poppe cautioned that the ETF inflow alone won’t push the price to $100,000 in two months. The Crypto Fear & Greed Index indicates that traders are currently characterized by “greed,” which is reminiscent of the sentiment before Bitcoin reached its all-time high of $69,000 in Q4 2021. Additionally, the Williams %R Oscillator, a historically accurate bull market indicator, is signaling that there may be more upside potential for Bitcoin’s price. This indicator behaved similarly before Bitcoin broke through $20,000 in late 2020. Caleb Franzen, senior market analyst at Cubic Analysts, shared that a support retest appears to have been successful, paving the way for potential continuation. 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.