April 19, 2024
Bitcoin's at $51,377, Dips to 1-Week Low Amid Uncertainties
Bitcoin price today

Bitcoin’s at $51,377, Dips to 1-Week Low Amid Uncertainties

Wednesday, February 21, 2024: Bitcoin price stands at $51,377. It encountered downward pressure, reaching a low of $50,879, posing a risk of breaking out from its established trading range. The resistance proved resilient, presenting hurdles for the primary cryptocurrency worldwide.

Data from TradingView revealed continuous retests of the lowest BTC price levels in a week. Despite reaching new 26-month highs of $53,000, Bitcoin encountered immediate sell-side pressure, even with familiar sources of support like anticipation of buyer interest in spot exchange-traded funds (ETFs).

Renowned trader Crypto Chase drew attention to Bitcoin grappling with the so-called fair value gap (FVG) on daily timeframes, observed from Fibonacci retracement levels. Despite the concerning scenario, Crypto Chase expressed optimism, stating, “Looks ugly, but I’ve seen Bitcoin recover from worse.”

Summarizing the market conditions, Keith Alan, co-founder of trading resource Material Indicators, emphasized in his video update that even ETF inflows couldn’t guarantee market support. He noted a slip into red territory on the BTC weekly candle, indicating potential downsides despite significant BTC ETF inflows. Alan pointed out that the pullback suggested two things: “Even in the ETF era of Bitcoin, ‘Up Only’ isn’t a thing. BTC Whales are selling into the ETF demand.”

In contrast to the bearish sentiment, trader Daan Crypto Trades called for calm. He noted, “There’s something to say for both directions here but I do feel like the bearish sentiment is getting a bit ahead of itself.”

Another optimistic trader, Jelle, echoed a similar perspective, suggesting a patient approach. Fellow trader QCP Capital attributed BTC price weakness partly to high funding rates, indicating that sustaining funding at these levels could be challenging, leading to a potential pullback.

In its market update, QCP Capital highlighted selling pressure in Asia afternoon, resulting in BTC reaching a low of $50,630 and ETH at $2,880. Additionally, QCP flagged potential volatility from tech giant Nvidia’s upcoming earnings, considering its high valuation multiples and elevated earnings expectations.

As Bitcoin faces challenges and undergoes price fluctuations, market analysts and traders are closely monitoring various factors, including ETF demand, whale activity, funding rates, and corporate earnings reports, to gauge the cryptocurrency’s trajectory in the coming days. The market sentiment remains dynamic, with both bullish and bearish perspectives in play.

Image by Sketchepedia on Freepik

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