Is Bitcoin price setting a trap near $72K before BTC’s next move?
Bitcoin [BTC] had a quiet weekend after exhibiting excessive volatility final week. The bounce from $60k reached an area excessive of $72.1k on Sunday, the eighth of February. The standard late-Sunday volatility didn’t arrive this time.
Monday’s New York buying and selling session might spark the subsequent short-term impulse transfer for Bitcoin. Merchants can wait till this transfer offers us a rejection from the $72k-$74k native provide zone, or an acceptance above it.
Is Bitcoin’s value bounce faltering?
Supply: BTC/USDT on TradingView
The 4-hour chart confirmed that Bitcoin’s value was nonetheless in a bearish development. The $71.9k and $75.1k have been the 61.8% and 78.6% retracement ranges primarily based on the sooner bearish swing transfer.
The MACD was approaching the zero line and will quickly type a bullish crossover. Nonetheless, the OBV was unable to climb towards the latest highs. This confirmed that the bounce occurred on comparatively low buying and selling quantity in comparison with the transfer downward.
Subsequently, merchants can preserve a bearish bias and use the Bitcoin value bounce to go quick. A transfer above $79.3k would shift the H4 market construction bullishly, invalidating the quick setup.
The liquidation clustered across the $72k space over the previous three days has been swept, however the Bitcoin value didn’t see a swift bearish response. It continued to hover above the $70k mark.
This was suspicious and hinted on the potential that an prolonged quick squeeze might be engineered. On this state of affairs, Bitcoin can rally to $80k to seek out the overhead quick liquidations earlier than resuming its larger timeframe downtrend.
Retail panic drives promote stress
The small Bitcoin holders are normally reactive to cost strikes. The shrimp class of holders (<1BTC) exhibited elevated alternate inflows within the aftermath of the October Bitcoin value crash.
Equally, the drop over the previous three weeks additionally introduced heavy inflows to Binance, identified analyst Darkfost.
Purchase or promote stress from this phase of the market doesn’t dictate the place costs go, however it’s fascinating to notice that retail sentiment was extraordinarily bearish in latest days. This phase has additionally been sidelined for probably the most half through the value advance in 2025, not like earlier cycles.
Ultimate Ideas
- There’s a likelihood of an prolonged Bitcoin bounce to seek out the liquidity as much as $80k.
- Small retail buyers panicked through the October crash and the previous week’s breakdown, who’ve been much less lively this cycle in comparison with the sooner ones.
Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion.
