Bitcoin (BTC) can finally recover something after the big dip of last week. As expected, the level held just above USD 38,000. At least for now then. The recovery is hardly a bounce and the fear and uncertainty in the financial markets, including cryptocurrenciesis still very high.
Bitcoin Fear and Greed Index is 25 — Fear
Current price: $38,308 pic.twitter.com/65yiB9xSIx— Bitcoin Fear and Greed Index (@BitcoinFear) February 21, 2022
Bitcoin price starts to recover
From bitcoin price began to rise in late January after briefly dipping to $33,000. However, when bitcoin hit $45,000, the resistance was too strong and the price made a pullback† Initially, bitcoin appeared to hold above USD 42,000 and then recovered to USD 44,000.
However, bitcoin was unable to hold on to this and plummeted to $40,000 late last week. Over the weekend, the $40,000 also failed to hold and bitcoin dropped to $38,350 yesterday morning. Bitcoin dipped to $38,200 a few more times later in the day, but overall, the price held up here.
Shortly before midnight, bitcoin finally started to rise again. The price fluctuated from $38,200 to a high of $39,450 this morning, up nearly 3.3% overnight. However, at the time of writing, bitcoin seems to be having some trouble and the price is falling to $39,150 on Binance and €34,440 on Battle.
$ BTC – Price bouncing at the daily supertrend support. Pretty good chance this holds and we continue to go up. pic.twitter.com/4MwZ8cLfDm
— IncomeSharks (@IncomeSharks) February 21, 2022
Anxiety very high, but confidence comes back
The level around USD 38,000 was expected to provide significant support. Earlier data showed that just above $38,000, several so-called whale clusters lie, in other words this is where the whales bought in.
Bitcoin plunged further this weekend after traditional exchanges closed. This means that a so-called “CME gap” arose, or a gap between the spot price of BTC and the price of futures on the Chicago Mercantile Exchange (CME). Filling this gap could push the price back towards $41,000.
{1/8} The stock market is down -12% and it is all because of the Federal Reserve.
But the thing is, so far, the Fed hasn’t done much except for talking… 📉🧐👇 pic.twitter.com/YvV99ozGBQ
— ecoinometrics (@ecoinometrics) February 21, 2022
That said, it can’t be called a really strong bounce for now. This may indicate that investors are even more cautious. This is likely because concerns about the situation in Ukraine as well as about the Federal Reserve’s upcoming monetary policy continue to grip the market. According to some analysts, this fear may already be priced in, but many people expect heavy blows to the financial markets that could spill over into the crypto market. Nevertheless, this rise gives hope again and analysts are getting more bullish.
#Bitcoin looks #Bullish pic.twitter.com/wZ53khJHIm
— Steve ⚡ (@decodejar) February 21, 2022
#Bitcoin had a rough week🙀
63 #BTC signals we track are mostly is the green zone.
🛒Time to BTD, the corn🌽 is on sale! 🛍️
TLDR:
—> ✅Good value for long-term #HODLers
—> ⏰BTC is 25.4% of cycle top
—> 🎯Cycle Top Avg: $181,939🔃Share this so noobs don’t panic sell! pic.twitter.com/gjBZKx8RA0
— 🇨🇦Binkie Pondarosa⚡️ (@BinkiePondarosa) February 20, 2022
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