An analyst claims that the sentiment
surrounding cryptocurrency is extremely excited, despite Bitcoin being priced
below $22,000. However, they also assert that there have not been any
significant trend lines broken yet.
Over the weekend, the price of Bitcoin (BTC)
tickers decreased and approached $22,000. Despite this, traders and analysts
have advised against having excessively negative sentiment, and instead
suggested caution.
Analyst dismisses "hysterical" crypto
sentiment
According to data from Cointelegraph Markets
Pro and TradingView, the BTC/USD saw small increases on February 12th.
: Bitcoin had hit three-week lows in the
previous week, but it became a target for whales looking to take advantage of
the situation, as explained by on-chain analytics resource Material Indicators.
Material
Indicators provided a chart from the BTC/USD order book on Binance, which
showed the resistance moving higher. This could lead to a potential increase in
the spot price, providing a better opportunity for large-volume players to
sell.
Accompanying comments mentioned that the
"FireCharts shows Crypto Weekend whales seem interested in trying to
exploit the upside illiquidity in the Bitcoin order book to sell higher."
The comments also mentioned that the commentator is fine with this situation.
This week's lows received moderate responses
from market participants, and some of them rejected the notion of a widespread
surrender event in the near term.
On the day, Filbfilb, the co-founder of
Decentrader, argued that the sentiment surrounding the bear market is
exaggerated when Bitcoin has not yet retested a major fibonacci level or moving
average, which were broken after a three-wave increase.
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Another popular trader, Crypto Tony, also had a
neutral stance on the current price action.
Crypto Tony explained that he was shorting the
market, as he felt that the price was below the main resistance zone of $22,400
to $22,600. However, he believed that there could be another test of the highs
if the price could hold above $20,300.
“Market structure is not yet broken to the
downside just yet.”
CPI leads important macro data week
As the
week was coming to a close, some people had already started looking towards
next week's macroeconomic data as the next potential source of volatility.
Related: Bitcoin is already in its ‘next bull market cycle’ — Pantera Capital
One of
the most important events next week will be the release of the Consumer Price
Index (CPI) for January in the United States on February 14th.
Cointelegraph contributor Michaël van de
Poppe, the founder and CEO of trading firm Eight, summarized the situation by
saying that it was going to be a big week, with other key economic data
releases including retail sales, Empire State Manufacturing Index, and Producer
Price Index (PPI) also due.
He added
that he believed inflation was likely to continue to fall steeply, which would
likely result in upward markets, given the recent sharp drop in gas prices.
Material
Indicators also agreed, stating that it expected volatility to persist through
Tuesday's release of the CPI report.
Overall,
next week's economic data releases are likely to play a significant role in
shaping market sentiment and prices.
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