Bitcoin (BTC) starts the last week of February in a volatile mood as a crucial area of resistance fails to break.
After a classic “fakeout” during low-volume weekend trading, BTC/USD is back below $25,000 with bulls still lacking momentum.
The largest cryptocurrency saw what looked like the next stage of its 2023 recovery last week, making swift gains and even tapping new six-month highs.
The good times were not to continue, however, and February’s progress has been much slower and hard won than January’s 40% gains. How will the rest of the month pan out?
A critical monthly close is due, along with a potential external price trigger in the form of minutes from the United States Federal Reserve.
Meanwhile, Bitcoin network fundamentals are due to leap to yet another all-time high, and miners are in full recovery mode.
Cointelegraph takes a look at these factors and more in an overview of BTC price perspectives for the final week of February.
RSI “bearish divergence” causes alarm
After a mostly calm start to the weekend after days of macroeconomic data reactions, Bitcoin woke up late Sunday to rise back above $25,000.
This was not to last, however, and as Cointelegraph reported, signs on exchange order books pointed to manipulative moves by large-volume traders.
A subsequent comedown after the weekly close took BTC/USD below $24,000 before a bounce back to the same levels as Saturday, where the pair still traded at the time of writing, according to data from Cointelegraph Markets Pro and TradingView.
For traders, there was naturally cause to be wary.
“Not paying much attention to weekend PA.. BTC typically saves it’s meaningful moves for US stock market hours,” Crypto Chase wrote in part of a Twitter summary.
Monitoring resource Material Indicators, which originally flagged the order book activity, meanwhile queried how long the phenomenon might continue with bulls powerless to make inroads higher.
Do you think support will hold at the notorious bid wall to play the range again or will it spoof and dump?
Remember #TradFi Markets are closed Monday. If you’re playing the game with Notorious B.I.D., manage your risk accordingly. pic.twitter.com/ZyZlHTMFWM
— Material Indicators (@MI_Algos) February 19, 2023
An additional chart of the Binance order book confirmed that major bid support, known as a “bid wall,” had moved lower to $23,460, giving spot price room to drift lower alongside.
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