Bitcoin (BTC) went against a retest of $ 40,000 on February 12 when the BTC price action lives up to analysts’ expectations.
Hourly candlestick chart BTC / USD (bit stamp). Source: Trading View
Trader hopes to avoid the “ugly” end of the week
Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD reached a local low of $ 41,741 on Bitstamp on Saturday before recovering by more than $ 42,000.
The pair’s reversal put an end to the pair’s progress following the release of US CPI data, and it was soon encouraged to go back to $ 40,000 or even lower to see how strong the bulls’ determination could be.
For Cointelegraph contributor Michael van de Poppe, the results were still uncertain, but there was definitely a need to be careful with short-term trades.
Along with a chart showing potential support and resistance targets, he concluded, “Bitcoin is still looking at the same resistance.”
“The weekly demand block is ruthlessly rejected. The weekly light is starting to look ugly + several levels of fear in the market in the coming weeks. For now, it remains flat. ”
An illustrative chart of BTC / USD for the week. Source: Mikael van de Poppe / Twitter
Meanwhile, others are asking for time for a potential long-term downside for Bitcoin.
A popular Credible Crypto commentator tweeted, “For those waiting for BTC under $ 30,000, cryptocurrencies can be with you because there is no chance.”
Even at current levels, Bitcoin’s weekly closing should be almost identical to the last one, thus retaining much of the previous rally that took it out of the $ 30,000 region.
Return to “Fear”
However, this week’s late withdrawal was more than convincing to give another blow to sentiment in the crypto market.
Related: Bitcoin is stuck in a tight area as BTC’s moving average prices are a big bullish crossover
According to the Crypto Fear & Greed Indicator, three days of “neutral” territory was enough before “fear” returned as an important force among traders.
On Saturday, the index was 44/100 after reaching 54/100 on Wednesday.
Crypto Fear & Greed Index (screenshot). Source: Alternative.me
The trading group Decentrader discussed January’s journey into lower “extreme fear” territory, arguing that the resumption of sentiment has probably already taken place based on historical patterns.
“Such prolonged periods of intense fear indicate that market participants as a whole may be taken by surprise by an intrusion. We have seen this play out with the rapid upward movement that the BTC dollar has shown over the past two weeks “, analysts wrote in a published market review. Friday.