Bitcoin's recent bullish momentum took a hit on February 21, as the leading cryptocurrency struggled to break through resistance and even dipped towards its lows from the previous week.
Bitcoin's recent bullish momentum took a hit on February 21, as the leading cryptocurrency struggled to break through resistance and even dipped towards its lows from the previous week. This pullback has analysts divided on the near-term outlook, with some urging caution and others highlighting potential catalysts for volatility in the coming days.
One key factor contributing to the uncertainty is the ongoing retesting of support levels. After reaching new 26-month highs of $53,000, Bitcoin encountered significant selling pressure. Even the anticipated boost from potential buyer interest in the newly launched spot exchange-traded funds (ETFs) failed to lift the market sentiment.
However, not everyone is ready to call a bearish turn. Trader Daan Crypto Trades advised against overreacting to the current sentiment, suggesting that it might be premature to assume a definitive downward trend. He emphasized the need for confirmation before making directional bets.
Another potential source of volatility identified by QCP Capital is the upcoming earnings report from tech giant Nvidia. High funding rates in the Bitcoin market are currently contributing to the price weakness, and the firm believes that any disappointment in Nvidia's earnings could trigger a sell-off across risk assets, including Bitcoin. Daan Crypto Trades echoed this sentiment, predicting a potentially "frothy" week if Nvidia beats expectations and sends its stock price soaring.
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