Bitcoin (BTC) took a dip at the beginning of this weekend. The fear on the cryptocurrencymarket, which has declined sharply in the past two weeks, is now picking up again. We are still seeing a trend where the older investors are holding onto their BTC while newer investors are a lot more reserved and regularly sell out of panic.
Bitcoin Fear and Greed Index is 44. Neutral
Current price: $42,179 pic.twitter.com/uIlKJd9AVI— Bitcoin Fear and Greed Index (@BitcoinFear) February 12, 2022
Bitcoin price makes pullback
From bitcoin price hit another high of $45,700 on Thursday, the highest since early January. That was shortly after a big bounce. It looked for a while that bitcoin would shake off the consequences of the publication of the US inflation figures.
However, the price then started to fall sharply and that continued on Friday. On Saturday, the price still held above USD 42,000, but by the end of the afternoon, bitcoin briefly dipped below USD 42,000. Then bitcoin made a small bounce, but the USD 43,000 had flipped back from support to resistance.
Bitcoin was rejected at $43,000 and plummeted just as quickly. This time, the price plunged to $41,900. Overnight bitcoin was able to gradually rise again and the price is at $42,400 at the time of writing Binance and €37,350 on Battle.
#Bitcoin has lots of similarities between now and the reversal pump + retrace at the end of the summer.
Notice price action, Bollinger Bands and Cumulative Volume Delta at these 2 points on the Daily chart.
Might see a minor retrace to the orange midline in days ahead. pic.twitter.com/KhyMg1TpMv
– ₿lake (@blaakke) February 12, 2022
Analysts divided or price dips further
Many analysts have warned that there would be a lot of resistance at USD 45,000 and that could lead to a pullback to the range between $41,000 and $42,000. The publication of the inflation figures may have contributed to this. We also see tensions between Ukraine and Russia rising again, making the financial markets more restless. It may be volatile times next week.
In the history of #Bitcoinnever have we entered a 🐻 market during a supply-side impulsive uptrend… #Crypto
🟩 Impulsive Phase
🟨 Corrective Phase pic.twitter.com/Zl0xYVy19Y
— Plan©️ (@TheRealPlanC) February 11, 2022
Beyond that, most analysts bullish about the bitcoin price, since the on-chain data still looks very positive. Meanwhile, the so-called hash rateor computing power, of the bitcoin network a new all-time high reaches. More on that later on Crypto Insiders. However, there is still a lack of volume and we are still not seeing FOMO as we did early last year and late 2017.
So far, the price drawdowns after both #Bitcoin ATHs this cycle have been small and brief compared to previous bear markets.
If that’s how this bear market looks like, I take it. 😎 🐻
While they are not precisely alike, they look more like mid-cycle corrections. 🐂 pic.twitter.com/wd6JyIcZ9M
– Jan Wüstenfeld (@JanWues) February 12, 2022
However, opinions seem to be strongly divided as to whether this was the pullback, or whether bitcoin dips further first. Should bitcoin fall further, much support is likely now between $38,000 and $40,000. Should bitcoin immediately rise further, then the $ 43,000 must first be recaptured. Once bitcoin breaks through $45,000, we may see the market turn euphoric and FOMO return. Nevertheless, there are likely to be many areas of significant resistance between $46,000 and $50,000.
How on earth can anyone be bearish on #Bitcoin when demand is growing and supply is shrinking?
When these two forces reconcile price action will be explosive.
Sit back, #stacksats and wait for the fireworks 💥 pic.twitter.com/3paQ6NeEET
— 🇨🇦Binkie Pondarosa⚡️ (@BinkiePondarosa) February 11, 2022
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