BTC price drops to 1-week low as traders focus on Bitcoin whales, Nvidia
Bitcoin (BTC) threatened to break out of its trading range at the February 21 Wall Street open, as resistance remained in place.
ETFs are no silver bullet for the Bitcoin bull market
Data from Cointelegraph Markets Pro and TradingView revealed ongoing tests of the lowest BTC price levels in a week.
After hitting a fresh 26-month high of $53,000, Bitcoin saw immediate sell-side pressure – even familiar sources of support, such as the anticipation of buyer interest in exchange-traded funds (ETFs), failed to lift the sentiment.
In response, popular trader CryptoChase highlighted that Bitcoin is caught in a daily time frame known as the Fair Value Gap (FVG), as seen from Fibonacci retracement levels.
A comment on X (formerly Twitter) reads: “It looks ugly, but I see Bitcoin recovering from the worst.
$BTC
4th Challenge of Daily FVG. It sounds ugly, but I've seen bitcoin recover from worse. I'm flat out here.
Plans: – daily close above 52.3k = focus longs. – daily close through FVG = focus shorts. – if retrace offered, buy dip starting at low 47k (46k is also possible, but I'm ahead I install). pic.twitter.com/PEeNYSdDL0
— Crypto Chase (@Crypto_Chase) February 21, 2024
Summarizing his latest video update, Keith Allan, founder of trading resources Material Indicators, emphasized that even ETF earnings cannot be relied upon as a foolproof way to buy the market.
“We are seeing the BTC W candle enter red territory by mid-week,” he wrote.
“Obviously, it has plenty of time to recover, and the high volume of BTC ETF flows will help mitigate some of the losses, but despite ETF demand, looking back at this suggests 2 things 1. In the age of Bitcoin, it's not an ‘Up Only' thing. 2. BTC Whales in ETFs They sell interest.
However, commenting on the current situation, famous trader Diane Cryptotrades asked for calm.
“Sentiment often follows price. If sentiment precedes price without actually following, it's often a reason to pay attention,” he wrote in a recent X update.
“There's something to be said here for both directions, but I feel like the depression is getting a little ahead of itself as we've gone the last week or so without a clear break. Wait for confirmation from both sides.
One of those days when it's good to remember the part of the cycle we're in.
Low time frames look like dog poop.
Don't shake. #Bitcoin pic.twitter.com/O2qxAT6alB
— Jelle (@CryptoJelleNL) February 21, 2024
His colleague Jhelem, who is known for his optimism in the market, had a similar angle.
Nvidia's earnings kick off a “harvest week.”
Next, trading firm QCP Capital attributed BTC's price weakness in part to higher funding rates.
Related: Open Interest Reverses $69K BTC Price — 5 Things to Know in Bitcoin This Week
“It is difficult for money to continue at these levels, which means that after such a strong move, a price reversal is possible,” he wrote in the latest market update sent to Telegram channel subscribers that day.
“We're already starting to see some selling pressure in the Asian afternoon (BTC 50,630 low, ETH 2,880 low).”
QCP pointed to a potential source of volatility in its risk assets in the form of earnings from tech giant Navid, which has since closed out of the US.
“NVDA is currently trading at a 90x P/E and Q4 earnings estimates were recently revised down,” he explained.
“With these valuation multiples and high expectations on earnings, any disappointment could see selling. That would certainly drag on US stocks and crypto prices as well.”
Daan Crypto Trades also gave importance to its earnings report.
“We could be set for volatility and a bubble in most markets over the next week or two if they win too much and prices rise too much,” read X's own forecast section.
“I'd rather see the markets cool down a bit rather than overheat too soon.”
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.
