Bitcoin bulls pushed the price close to $100,000 at the Wall Street open on February 21, reaching $99,500 on Bitstamp.
However, a pattern of selling pressure emerged as U.S. markets opened, contrasting with gains seen in Asia and Europe.
Market Liquidity and Resistance Levels
Trading resource Material Indicators noted shifting liquidity dynamics as Bitcoin recovered from a recent dip. “Whether this develops into a bull trap or a bonafide breakout remains to be seen,” analysts stated, emphasizing the importance of the $100K resistance level.
Traders Weigh In on Bitcoin’s Future
Popular trader CRG observed that bears were attempting to cap gains at a key midpoint in Bitcoin’s multimonth trading range. Meanwhile, Rekt Capital highlighted a bullish divergence forming on Bitcoin’s Relative Strength Index (RSI), suggesting potential upside momentum.
U.S. Dollar Weakness Provides Tailwind
Bitcoin and other risk assets received support from a weakening U.S. dollar, with the U.S. Dollar Index (DXY) dropping to 106.38, its lowest level since December 2024. Analysts believe this could provide a favorable environment for further Bitcoin gains.
