Bitcoin (BTC) Hits 6-Month Highs as Rejection Follows

The largest digital asset by market capitalization Bitcoin (BTC) recorded six-month highs on Feb. 21 hitting $25,248 before facing outright rejection as pre-Wall street volatility returns as per data from CoinMarketCap. 

A critical rejection of hourly time-frames spurred Bitcoin to tank to $24,555, which brought it back to the initial trading range.

Against the backdrop that the Wall Street holiday commences on Feb. 20, Bitcoin will likely encounter three days of “out-of-hours” trading with thinner liquidity in place. This will give rise to volatile moves in both directions – up and down. 

Bitcoin made a significant push to beat the previous week’s highs but it was short-lived, thereby leading to the liquidations of both long and short traders as revealed by data from Coinglass. 

Meanwhile, Monitoring resource Material Indicators has continued to keep a tab on flash volatility being aided by whale traders on exchanges. It was revealed that the attempt was to move the market with mass bids and ask liquidity. 

Update on the range set by the Notorious B.I.D.#FireCharts shows ask liquidity laddered up to ~$26.5k and it appears liquidity in that range is getting trickled into the active #trading range and replenishing resistance at $25k. Want to see more bids above $24k to retest $25k. pic.twitter.com/RW0MMxCuIl

— Material Indicators (@MI_Algos) February 20, 2023

To this end, popular trader Daan Crypto Trades revealed that 2500 BTC in sell orders are placed between $24,800 and $25300 on the BTC/USDT pair. 

2500 $BTC in sell orders stacked between $24.8-25.3K on the BTC/USDT pair.

Could be for three reasons:

1. Actual sell orders.
2. Orders to suppress price to fill orders before pulling them or buying into them later.
3. Orders to walk price down. pic.twitter.com/jqwYA61vbL

— Daan Crypto Trades (@DaanCrypto) February 20, 2023

In the same vein, another crypto trader Tony expressed somewhat confusion, saying that the market is struggling to hold on to $25000 but the unanswered question remains if it would stay above or revert drastically to the resistance zone. 

Far from the foregoing assumptions, Venturefounder, a contributor to on-chain analytics platform CryptoQuant envisaged that Bitcoin will retest lower levels before upward continuation can be seen. 

$25k #BTC is very alike $31k in July 2021. #Bitcoin might go above it in a "Fakeout" but likely retest lower support before consolidation and resume to the uptrend.

— venturefoundΞr (@venturefounder) February 21, 2023

Bitcoin’s Next Line of Action

While Bitcoin (BTC) is still indecisive on its next line of action on whether to move up or down, Galaxy Digital Holdings CEO Mike Novogratz has projected that BTC will hit $30,000 before the end of the first quarter. 

On the contrary, some crypto analysts believed that a drastic reversal to $12000 is still feasible amid the SEC crackdown and market conditions. 

Amidst the back and forth, Bitcoin has surged more than 40% since the beginning of 2023 and it may likely set the foundation for the next bull run.