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Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) faces a new battle to overcome “densely packed” resistance as $50,000 becomes the BTC price focus.
In a <a href="https://twitter.com/ColeGarnersTake/status/1757638900871291032" target="_blank" rel="noopener nofollow">thread</a> on X, popular analyst Cole Garner spotlighted crypto exchange Bitfinex.
<h2 data-ct-non-breakable="true" id="bitfinex-entity-on-the-radar-as-ask-liquidity-mushrooms">Bitfinex entity on the radar as ask liquidity mushrooms</h2>
Despite <a href="https://cointelegraph.com/news/bitcoin-price-drops-hot-cpi-markets-fed-rate-cut">dipping nearly 4% on Feb. 13</a> due to surprise United States inflation data, Bitcoin has already canceled its losses and even set a new two-year high.
Prior to the Feb. 14 Wall Street opening, BTC/USD brought the $52,000 mark into play, per data from <a href="https://subscription.cointelegraph.com/">Cointelegraph Markets Pro</a> and <a href="https://www.tradingview.com/symbols/BTCUSD/?exchange=BINANCE" target="_blank" rel="noopener nofollow">TradingView</a>. 
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-02/453a1b66-2007-4e42-9f1a-5c9955330340.png" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USD 1-hour chart. Source: TradingView
 </figcaption>
</figure>
For market observers, however, there is a catch: bulls face a reshaped liquidity landscape, which could keep the market trapped below $52,000.
“Brick wall of asks on Bitfinex. Densely packed all the way up to $52.3,” Garner summarized.
<blockquote data-ct-non-breakable="true">
 “ETF flows could eat thru it, but bitfinex is replenishing the wall much faster than demand can swallow it. All price can do is bounce off that.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-02/4ba289b2-cdbe-4087-ab9c-bbab397d2292.jpeg" alt="" title="">
 <figcaption style="text-align: center;">
 Bitfinex BTC/USDT order book data. Source: Cole Garner/X
 </figcaption>
</figure>
His post referred to the tug-of-war between sellers and spot demand from the newly-launched U.S. spot Bitcoin exchange-traded funds (ETFs). Despite consuming many times more BTC than is added to the supply by block subsidies, the ETFs currently face a glut of liquidity in the key $50,000 zone.
“This is one entity. A distinct signature. We’ve seen this behavior many times. They walked the whole market up from $3k-$10k in 2020,” Garner continued.
<blockquote data-ct-non-breakable="true">
 “I've never seen them replenish in real time. This is new behavior.”
</blockquote>
The focus is on Bitfinex and its sister firm, stablecoin supplier Tether. In the past, Bitfinex whale traders have <a href="https://cointelegraph.com/news/beware-the-bitfinex-whale-new-45k-btc-sell-wall-appears-amid-worries-bitcoin-could-retrace">exerted significant influence on spot price</a> thanks to the volume of their trades. Nonetheless, the identity of the liquidity provider remains unknown.
<h2 data-ct-non-breakable="true" id="bitcoin-etfs-aim-for-record-daily-inflows">Bitcoin ETFs aim for record daily inflows</h2>
Meanwhile, ETFs saw noticeable inflows for Feb. 13, passing $600 million, with BlackRock’s product accounting for nearly half a billion dollars on its own.
Related:&nbsp;<a href="https://cointelegraph.com/news/bitcoin-og-2021-all-time-high-600k-btc-price-2026">Bitcoin OG who called 2021 all-time high sees $600K BTC price by 2026</a>
<blockquote class="twitter-tweet">
 Yesterday's ETF inflows with an insane $631 million with Blackrock being just a bit shy of half a billion.<a href="https://twitter.com/search?q=%24GBTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$GBTC</a> outflows at $73 million. Price is down compared to Monday because of other markets crashing on CPI numbers which came in hot. Expected rate cuts now only in July… <a href="https://t.co/dky7ogmYVr">pic.twitter.com/dky7ogmYVr</a>— WhalePanda (@WhalePanda) <a href="https://twitter.com/WhalePanda/status/1757632227901317389?ref_src=twsrc%5Etfw">February 14, 2024</a>
</blockquote> 
The trend is helped by reduced outflows from the Grayscale Bitcoin Trust (GBTC), now at a fraction of their <a href="https://cointelegraph.com/news/gbtc-outflows-drop-bitcoin-exchanges-btc">daily peak</a> seen in January.
“But even as GBTC loses less Bitcoin now, these new funds keep buying just as much,” Thomas Fahrer, CEO of crypto-focused reviews portal Apollo, wrote in part of recent X <a href="https://twitter.com/thomas_fahrer/status/1757548478656635378" target="_blank" rel="noopener nofollow">coverage</a>. 
<blockquote data-ct-non-breakable="true">
 “This is very exciting to see! This means the new ETFs attracting fresh money to invest in Bitcoin, not just the same old investors moving their money around.”
</blockquote>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin faces $52K ‘brick wall’ at Bitfinex as BTC price erases 4% dip

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Cointelegraph

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