December 2, 2023


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Bitcoin price eyes $22K rebound with BTC market structure ‘not yet broken’

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Bitcoin (BTC) approached the $22,000 mark over the weekend, traders and analysts warned against being too bearish in sentiment.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Analyst dismisses “hysterical” crypto sentiment

According to data from Cointelegraph Markets Pro and TradingView, Bitcoin (BTC/USD) saw some small increases leading up to February 12th.

Following a dip to three-week lows, Material Indicators, a resource for on-chain analytics, noted that large whales saw an opportunity to capitalize on the market.

Material Indicators shared a chart from the BTC/USD order book on Binance, showing that resistance levels were shifting higher, providing a more favorable selling point for those with large volumes of Bitcoin.

The accompanying commentary noted that “FireCharts shows Crypto Weekend whales seem interested in trying to exploit the upside illiquidity in the Bitcoin order book to sell higher.” The author of the commentary expressed their agreement with this market strategy.

BTC/USD order book data (Binance). Source: Material Indicators/ Twitter

The market reaction to the recent lows was moderate, with some participants resisting the idea of a rapid collapse in the short term.

Filbfilb, co-founder of DecenTrader, a trading suite, disputed the notion of a bear market, stating that “CT [Crypto Twitter] is being overly dramatic about a bear market when BTC hasn’t retested a major fib or moving average after a three-wave upswing.”

Similarly, the well-known trader, Crypto Tony, held a calm outlook on the current price action.

He shared that he was shorting the market, as the price was below the main resistance zone of $22,400 to $22,600. However, he believed that there was a possibility for another push towards the highs if the price could remain above $20,300.

“Market structure is not yet broken to the downside just yet.”

BTC/USD annotated chart. Source: Crypto Tony/ Twitter

CPI leads important macro data week

As the week came to a close, some market participants were already looking ahead to next week’s macroeconomic data as a potential source of volatility.

The Consumer Price Index (CPI) release for January, due on February 14th, is the main event to look out for in the United States this month.

Cointelegraph contributor, Michaël van de Poppe, the founder and CEO of trading firm Eight, emphasized that this was going to be a big week, with other key data releases including retail sales, the Empire State Manufacturing Index, and the Producer Price Index.

He opined that inflation was likely to continue to fall steeply and that declining gas prices could boost markets.

Material Indicators also concurred, indicating that they were “expecting volatility to continue through Tuesday’s CPI Report.”

Consumer Price Index (CPI) chart. Source: Bureau of Labor Statistics

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