Bitcoin [BTC] had a quiet weekend after showing extreme volatility last week. The $60k rebound reached a local high of $72.1k on Sunday, February 8. This time, the usual late Sunday volatility did not materialize.
Monday’s trading session in New York could provide the next short-term boost for Bitcoin. Traders can wait for this move to give us a rejection from the local supply zone of $72,000-$74,000, or an acceptance above.
Is Bitcoin’s price rise faltering?
Source: BTC/USDT on TradingView
The 4-hour chart showed that Bitcoin price was still in a bearish trend. The $71.9k and $75.1k were the 61.8% and 78.6% retracement levels, based on the previous bearish swing move.
The MACD was approaching the zero line and could soon form a bullish crossover. However, the OBV was unable to climb to recent highs. This showed that the upswing occurred on relatively low trading volume compared to the downward move.
Therefore, traders can maintain a bearish bias and use the Bitcoin price rise to go short. A move above $79.3k would change the market structure bullishly in the fourth quarter, invalidating the short setup.
The liquidation that clustered around the $72k area over the past three days has been wiped out, but Bitcoin price did not see a quick bearish reaction. It continued to hover above the $70,000 mark.
This was suspicious and indicated the possibility that an extensive short squeeze could be accomplished. In this scenario, Bitcoin may rise to $80,000 to catch the overhead short liquidations before resuming the downtrend on a higher time frame.
Retail panic leads to selling pressure
The small Bitcoin holders usually react to price movements. The shrimp category of holders (<1BTC) showed increased foreign exchange inflows in the wake of the Bitcoin price crash in October.
Similarly, the decline over the past three weeks also saw heavy inflows into Binance, the analyst said Donkerfost.
The buying or selling pressure from this market segment will not determine where prices go, but it is interesting to note that retail sentiment has been extremely bearish in recent days. This segment has also been largely sidelined during the 2025 price surge, unlike previous cycles.
Final thoughts
- There is a chance of an extended Bitcoin bounce to track liquidity to $80,000.
- Small retail investors panicked during the October crash and last week’s collapse, and have been less active this cycle than the last.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.