Bitcoin (BTC) rallied back above $24,000 at Wall Street’s open on Feb. 17 as analysis favored a “consolidation and continuation” higher.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
Bitcoin faces a key level to “break” the bear trend.
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD recovered some overnight losses after falling to $23,369 on Bitstamp.
The pair had made fresh six-month highs the day before, which faced strong resistance in the form of two weekly moving averages (MAs) and a strong sell-off wall.
BTC/USD 1-week candlestick chart (Bitstamp) with 200MA. Source: TradingView
Scott Melker, the trader and podcast host known as “The Wolf of All Streets,” emphasized the importance of levels acting like lines in the sand for bulls.
“$25,212. I’ve been yelling at this number for weeks. A break above this (ideally close) will result in a higher high for the first time since $69,000,” he tweeted of the weekly chart on Feb. 16.
“This breaks the bear trend. Just tapped to the cent… and dropped at short notice. Time to pay attention!” BTC/USD annotated chart. Credit: Scott Melker/Twitter
Examining activity on the exchanges and monitoring material indicators for resources identified bid support which was slowly moving higher with the spot price being taken.
“The infamous BTC buying wall that we’ve been tracking for the past 5 weeks has just made another strategic move, this time just above the 21-day moving average,” it reads alongside a chart.
“This entity seems to play the technique level by level.”
Accompanying data from Binance’s BTC/USD order book also showed resistance rising as high as $25,600 – well above the location of the 200-week ma, which flipped from support to resistance last August.
BTC/USD order book data (Binance). Source: Material Indicators/ Twitter
Traders: Crucial support at $22,800
Cointelegraph contributor Michaël van de Poppe, meanwhile, was optimistic about the prospects, calling for “consolidation and continuation.”
Related: The Bitcoin metric is issuing the “mother of all BTC bullish signals” for the fourth time ever
“Bitcoin sees a rise off the high and declines a bit there, but that doesn’t mean we’re going to $12,000,” he argued in a tweet that day.
A chart flagged $22,800 as a key area for bulls should BTC/USD decide to print a higher low (HL) next.
Annotated BTC/USD chart. Source: Michael van de Poppe/Twitter
The day before, Van de Poppe argued that the period from March to June should be a “party” in all crypto markets.
“It’s hard to define a proper strategy when everyone around you is yelling the opposite. That’s what happens at these aid rallies,” he continued updating the crypto sentiment.
“People are stuck in the mindset of the last 18 months and can only expect further downside. So they keep closing.”
It was long traders who still felt most of the pain on Feb. 16, as Bitcoin’s decline liquidated $45 million in positions, data from Coinglass shows. Cross-crypto long liquidations hit nearly $125 million.
Bitcoin Liquidation Chart. Source: coin jar
The views, thoughts, and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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