As bulls made money over the weekend, the price of bitcoin moved back into the middle of its intraday trading range at the weekly close on February 18.
The BTC price consolidation center was $52,000, according to data from TradingView and Markets Pro. The day before, the biggest cryptocurrency dropped to $50,680 on Bitstamp, its lowest point in several days but in the hours that followed, there was a quick bounce that added roughly $1,500, and as of this writing, there has been no further retest of the lows.
Popular trader Skew observed a shift in trader behavior in the second half of Wall Street trading week after analyzing the week’s events.He disclosed that spot purchasing had decreased by the weekend and that there had been “mostly taker driven dips & bounces since.”
He posted that day, “so far seeing some spot buyers return here with binance spot leading. “Meanwhile, statistics showed that rising open interest (OI) on CME Group’s Bitcoin futures markets, which reached a record $6.8 billion, was a sign of impending instability.
“In my opinion, the October rally of +100% has been beneficial for leverage,” he stated. The neutral funding rate has mostly not changed, while the open interest rate in bitcoin is lower. Naturally, during this period, the value of the underlying asset (BTC) increased in USD.
According to Skew, bulls must maintain their upward momentum in the relative strength index (RSI) of Bitcoin on 4-hour timeframes until the weekly close and another significant figure was the 21-period exponential moving average (EMA), which is currently around $51,500.
He described the situation on Binance as follows: “In terms of spot flows around $52K – $53K area, notable spot selling into bounces which is often the case with profit taking.”Seeing enough spot demand on dips, mostly seen as absorption at the lows where limit buying outweighs taker selling, is key from here with the current uptrend.”
Matthew Hyland, a fellow trader and analyst, pointed out that $49,000 is the final barrier to be protected at the closing.