BTC price hits new February high as Bitcoin buyers target distant $25k.
Bitcoin (BTC) surged above $43,500 on Wall Street on February 5 as US markets responded to China's stock market turmoil.
China losses fuel talk of recession.
Data from Cointelegraph Markets Pro and TradingView showed a local high of $43,515 on Bitstamp – a new February BTC price record.
Bitcoin overheated in the first Asian trading session of the week, with China's CSI 1000 index shedding 8% in a single day, prompting authorities to crack down on short selling.
Marketing Input Kobeisi's letter questioned whether the country could be in recession, creating a “disconnect” between large and small stocks.
“The Chinese market has lost $7 trillion in value in the last 3 years,” X (formerly Twitter) said in part.
Even as China promises to stabilize its markets, investors are worried.
Many believe that China is primarily focused on large capital accumulation.
Hence why there is now a huge correlation between large and small caps.
Follow us @KobeissiLetter for real-time analysis as this develops.
— Kobeissi Letter (@KobeissiLetter) February 5, 2024
Bitcoin's volatility has been aided by a significant increase in open interest, amounting to $775 million, per data uploaded to X from JA Maartunn, contributor to on-chain analytics platform CryptoQuant.
Outflows from Greyscale Bitcoin Trust (GBTC) came in at around 2,600 BTC, lower than in previous days, continuing an encouraging downward trend.
Today's #Bitcoin sent in $GBTC/Grayscale comes out to be worth ~2.6K$BTC or ~115$M.
Another big discount from the latest trading day on Friday.
I want to wait a bit for the next block to make sure this is just a low volume. It just looks like… pic.twitter.com/1rOuf78oND
— Daan Crypto Trades (@DaanCrypto) February 5, 2024
$25,000 zone gets hot liquid
Analyzing order book composition, Keith Allan, founder of trading tool Material Indicators, had a new BTC price warning in store.
Related: China Stocks Fall 8% in Hours — 5 Things to Know in Bitcoin This Week
Bitcoin still showed no shortage of liquidity below the spot price, making a return to $42,000 particularly easy.
By zooming in, liquidity was increasing much less – around $25,000, indicating Alan's tendency to dip.
“This does not mean that the price will go here immediately, or at all, but it means that there is some feeling for this level now,” he explained in a recent video update.
“Is it real emotion or are you just sitting here for a strong wick? That remains to be seen, but I'll be watching this to see more liquidity come into this range because in my opinion liquidity equals sentiment.
GM
In this #BTC analysis we look at candlestick charts and order the book flow data in #FireCharts by time frames to clarify where the signs of strength and weakness are in the chart.
So far, BTC has failed to print a full candle above the 50-day MA… pic.twitter.com/BRzWdZU5yZ
— Keith Allan (@KAProductions) February 5, 2024
Allen added that the liquidity demand ladder, which has itself been trending down, now suggests that a rise to $45,000 or more could be imminent.
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.
