Bitcoin (BTC) hovered above $43,000 on Feb. 11 as volatility waned after a fresh local peak.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Support and resistance zones narrow
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD awaiting a trigger to test either support or resistance nearby as Wall Street opened on Feb. 11.
The largest cryptocurrency had seen difficult moves for traders after Feb. 10’s U.S. CPI data, this causing pain for longs and shorts alike as 24-hour liquidations topped $200 million across crypto.
With the inflation narrative still in the air, attention focused on the probability of Federal Reserve rate hikes and their timing.
“The markets have priced in rate hikes. However, if we suddenly get an emergency rate hike in the coming week or an acceleration of the rate hikes, that’s going to be harmful for the markets and potentially give a shock reaction. Therefore, remaining relatively calm on trading,” Cointelegraph contributor Michaël van de Poppe said on the day.
Fellow trader and analyst Scott Melker, known as the “Wolf of All Streets,” noted the narrowness of the current chart setup on lower timeframes, with support and resistance in evidence a comparatively short distance from spot.
Tons of supply and resistance above $45,000, as indicated by the upwicks.
Tons of demand and support in the low $43,000s, as indicated by the downwicks. pic.twitter.com/QAAIVSXJkG
— The Wolf Of All Streets (@scottmelker) February 11, 2022
For Anbessa, another popular commentator, the time had come to focus more on price action and sentiment and less on fundamentals to navigate the coming moves.
“Don’t fight the market. Forget all fundamental talk. Price Action (+sentiment) only,” he tweeted on Feb. 11, preserving a mid-term target of just above $48,000.
On Wall Street, the S&P 500 opened down before a slight recovery, continuing the impact of the CPI readout which delivered 7.5% annual inflation — another 40-year high.
More fuel for chart bulls
Another short-timeframe signal joining in the bullish trend comes in the form of two more moving averages.
Related: Bitcoin metrics…