BTC Price Sets New February High as Bitcoin Buyers Target Faraway $25K
Bitcoin rises into the week’s Wall Street open as China spooks investors, but BTC price analysis reveals what looks like growing support for a major drop.
China’s losses spark talk of recession
Bitcoin spiked past $43,500 into the Feb. 5 Wall Street open as United States markets reacted to Chinese stock turmoil.
China’s CSI 1000 index shed 8% in a single day, prompting authorities to impose further controls on short selling.
Trading resource The Kobeissi Letter queried whether the country might be in recession.
$25,000 zone gets fresh liquidity
Analyzing order book composition, Keith Alan, co-founder of trading tool Material Indicators, had a fresh BTC price warning in store.
Bitcoin still lacked liquidity immediately below the spot price, making a return to $42,000 especially easy.
Liquidity was increasing far lower — around $25,000, signaling growing sentiment for a dip.
Bitcoin buyers target faraway $25K
Keith Alan explained that there was some sentiment for a potential dip to the $25,000 level, although this did not guarantee an immediate drop in price.
He noted that more liquidity coming into the $25,000 range would be a sign of increasing sentiment.
On the other hand, the ladder of ask liquidity overhead spot indicated the likelihood of a snap upside to $45,000 or higher in the short term.