Bitcoin trended toward $40,000 retest on February 12 as its price action bore out analysts’ and experts’ predictions. It did not take much, just around $3,500 off the BTC price, for the crypto traders to have a change of heart.
Bitcoin Traders Hope To Avoid A Bad Weekly Close
Data acquired from TradingView showed BTC/USD reaching local lows of $41,741 on Bitstamp before a rebound over $42,000. A U-turn ended bitcoin’s advance after U.S. CPI data hit, and calls soon emerged for a return to $40,000 and lower to see how steely the bulls’ resolve was.
For contributor Michaël van de Poppe, the results seemed inconclusive, but caution was required going into the future for the short-timeframe traders. He summarized alongside a chart showing possible support and resistance targets:
“Bitcoin looking at the same resistance still. Weekly order block rejecting in a harsh manner. Weekly candle starts to look ugly + several levels of fear across the market for coming weeks. Remaining flat at this stage.”
In the meantime, others called time on the possible scope of Bitcoin’s long-term downside. One popular Twitter commentator Credible Crypto stated:
“For those waiting for sub 30k $BTC, may the crypto gods be with you because the odds are not.”
For those waiting for sub 30k $BTC, may the crypto gods be with you because the odds are not. https://t.co/LJPDoa4KCx
— CrediBULL Crypto (@CredibleCrypto) February 12, 2022
Even at the current prices, Bitcoin’s weekly close was set to be mainly identical to the last, hence preserving most of the previous gains that had taken it out of the $30,000 zone.
Buy Bitcoin Now‘Fear’ Is Back
The latest plunge this week was more than convincing for the crypto market sentiment to take a new hit. Based on the Crypto Fear & Greed Index, three days of “neutral” territory was adequate before the return of ‘fear’ as the major force at play among the traders.
On February 12, 2022, the Index measured 44/100 after it reached 54/100 on February 9.
While discussing January’s weeks-long plunge into the “extreme fear” zone, trading suite Decentrader insisted that a sentiment reset might have already come according to the historical patterns.
Analysts wrote in a market update released Friday:
“Such extended periods of extreme fear give an indication that general market participants can be caught offside. We saw that play out with the fast move to the upside that $BTC has shown over the past two weeks.”
