Bitcoin [BTC] experienced intense volatility over the past trading week. On Wednesday, February 25, BTC formed a local high at $69,988 and fell 9.94% to a local low of $63,030 on Saturday, February 24.
After reaching this low point, Bitcoin immediately recovered. At the time of writing, it was up 7.71% from $63,000 in less than 24 hours. According to CoinGlass data, the leading crypto saw $299.72 million in liquidations in 24 hours.
The wild volatility of the past two days resulted in both long and short positions accounting for roughly the same amount of Bitcoin liquidations. It showed how risky market conditions were.
The whip price reactions to developments the past few hours difficult to predictand even harder to trade.
What is the current short-term bias for Bitcoin?
In an earlier report, AMBCrypto had highlighted that 2026 will most likely be a difficult year for long-term holders.
This outlook has not changed, but key developments over the past week mean there is reason to expect more bullishness in the near term.
Source: BTC/USDT on TradingView
The first argument is the Bitcoin bulls’ defense of the $62.9k level. This was the daily session that concluded on February 5. Since then, BTC has traded within that day’s candle, which some analysts call a mother candle.
Trading within this area represents a consolidation phase before the next step. Consider the valiant defense of the lows. Even the threat of war during traditionally low liquidity weekends was not enough to break this.
Source: BTC/USDT on TradingView
The second argument is the H4 price structure. The previous lower high from February 21 at $68,698 was highlighted in orange.
This level was breached during the mid-week rally and a subsequent retracement occurred.
Interestingly, the retracement started to reverse from the $63k level. The 78.6% Fibonacci retracement level of $64.1k was recovered within hours of losses. Therefore, the short-term bias is bullish.
Call to Action from Traders – Expect the move to continue higher
There is a legitimate reason for short-term bearish traders to shift to a bullish bias. The current rally was not entirely driven by a liquidation chase.
As shown by the trading volumes in the fourth half of the year, there was healthy volume behind the rally.
At the same time, late Sunday volatility is a storm cloud hanging over the bulls, and Monday’s trading session in New York could set the tone for the rest of the week’s price action.
Final summary
- The past week’s Bitcoin volatility has been extremely troublesome even for seasoned Bitcoin traders.
- The H4 chart and defense of the lows of $62.9k provided ample evidence that the short-term bias was bullish.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.