Bitcoin Faces $52K ‘Brick Wall’ On Bitfinex As BTC Price Erases 4% Dip
Bitcoin (BTC) faces a new battle to overcome “consolidated” resistance as the $50,000 BTC price becomes the focus.
In a thread on X, popular analyst Cole Garner drew attention to crypto exchange Bitfinex.
Ask the Bitfinex body as liquid mushrooms on the radar
On Feb. 13, bitcoin pared losses to set a new two-year high, despite falling nearly 4 percent on US inflation.
Ahead of the February 14 Wall Street open, BTC/USD brought the $52,000 mark into play, according to data from Cointelegraph Markets Pro and TradingView.
But there's a catch for market watchers: Bulls face a changed liquidity landscape, keeping the market under $52,000.
“A wall of questions on Bitfinex. Packed up to $52.3,” Garner summarized.
ETF flows can eat through it, but Bitfinex fills the wall faster than it can absorb demand. All he can do is get out of there.
His post mentions the war between sellers and demand for Bitcoin exchange-traded funds (ETFs) from the newly launched US space. While the amount of BTC added to the supply through block grants is many times greater, ETFs currently face liquidity problems in the key $50,000 zone.
“It's a part. It's a different signature. We've seen this behavior many times. In 2020, it's $3K-$10K and they drive the whole market,” Garner continued.
“I've never seen them fill in real time. This is a new feature.
The focus is on Bitfinex and its sister firm, stablecoin provider Tether. In the past, Bitfinex whale traders have had a significant impact on the spot price thanks to the volume of their trades. However, the identity of the liquidator is not known.
Bitcoin ETF aims to record daily returns.
Meanwhile, ETFs saw significant inflows surpass $600 million for February 13, with BlackRock's product accounting for nearly half a billion dollars on its own.
Related: 2021 All-Time High Bitcoin OG Will See $600K BTC Value By 2026
Yesterday's ETF went in at an insane $631 million, Blackrock was just shy of half a billion. $GBTC was out at $73 million.
Prices fell from Monday as other markets were hit by CPI numbers that came in hot. The expected price will now drop only in July… pic.twitter.com/dky7ogmYVr
— WhalePanda (@WhalePanda) February 14, 2024
The trend has been helped by reduced outflows from Greyscale Bitcoin Trust (GBTC), which is now just short of its daily high seen in January.
“But when GBTC now loses less Bitcoin, these new funds continue to buy just as much,” Thomas Fahrer, crypto-specific reviews portal Apollo, recently wrote in part of the X cover.
“This is very exciting to see! This means that the new ETFs will attract new money to invest in Bitcoin, not just old investors moving their money around.”
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
