Bitcoin Sees Sudden Volatility, Market Indicators Forecast Upward Price Trend Amid Risks
Summary:
Bitcoin exhibited sudden volatility at the Wall Street opening on February 20th, causing a notorious 'fakeout' that led to disastrous effects on traders. Despite this, various market indicators and analysts suggest an overall upward trend. Observations from the Williams%R Oscillator signal potential price increment, similar to patterns experienced before Bitcoin's initial breach of the $20,000 mark in late 2020. However, experts warn of the inevitability of market corrections and short-lived repercussions, urging traders to conduct independent research due to the risks involved.
A sudden spurt of instability was evidenced by Bitcoin (BTC) at the February 20th Wall Street market open, leading to detrimental effects on traders, as a colossal "fakeout" took place. Observations made from networks such as Cointelegraph Markets Pro and TradingView, provided insight into the surprising BTC price fluctuations as it abruptly broke the $53,000 mark only to be discarded before long. The rejection was robust, erasing the entire day's advancement in less than two hours, bottoming at $51,400. A modest recovery at the time of writing positioned its gaze on $51,700.
Speaking of Bitcoin futures open interest, a notorious spark for volatility that had witnessed its highest levels in over two years at the week's start, it remained a little over $22.5 billion according to CoinGlass. Following the unsuccessful attempt to overthrow the $53,000 hurdle, eminent trader Jelle advised his subscribers to view things from a broader perspective. Making a clear reference to the spot Bitcoin exchange-traded funds (ETFs) that resumed operations on February 20th post a national holiday in the US, Michaël van de Poppe, Founder and CEO of trading firm MNTrading, highlighted that the current trajectory indicates growth. Despite this, he does not believe this implies a continuous growth curve. As these ETFs stockpile BTC, it eventually results in Bitcoin gaining, leading some traders to escalate their exposure in anticipation of Wall Street's opening, hoping to tap into prospective profits resulting from potential upshots.
Van de Poppe, however, cautioned that such ETF inflows won't thrust Bitcoin prices to the $100K mark within a mere two-month frame. He sensitised traders to the harsh reality of market corrections, explaining that they were bound to occur and, considering the prevailing sentiments, the repercussions could be severe but short-term.
Reflecting this market sentiment is the Crypto Fear & Greed Index, signifying a general atmosphere of "greed" among the widespread league of crypto traders. As per previous records by Cointelegraph, the Index recently reached peak "greedy" levels, comparable to when Bitcoin had almost hit its all-time high of $69,000 in the fourth quarter of 2021.
Caleb Franzen, a senior market analyst at Cubic Analysts, brought attention to the Williams%R Oscillator, a bull market indicator known for its accurate history, which now signals potential upward BTC price movement. The same circumstance was observed before Bitcoin's initial breakthrough of the $20,000 mark in late 2020.
Cointelegraph reports suggest that Franzen utilised the oscillator to signal the conclusion of the 2022 bear market. It is essential to note that this article does not extend any investment advice or endorsements and encourages readers to carry out independent research to make any trading or investing-related decisions due to the inherent risks involved.
Published At
2/20/2024 7:31:50 PM
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