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Volatility exploded on bitcoin to start the new week. Is this an opportunity for investors and traders or is the crypto crash finally here?

Equity Markets Bond Yields Commodities & Crypto
DAX: 13948.01 -0.32%
FTSE: 6610.63 -0.20%
S&P 500: 3876.70 -0.77%
NASDAQ: 13619.85 -1.83%
US 10-YR: 1.335% -0.01
Bund 10-YR: -0.352% -0.04
UK 10-YR: 0.668% -0.029
JPN 10-YR: 0.117% -0.029
Oil: 60.73 -0.67%
Gold: 1,776.90 +0.23%
Bitcoin: 51673.62 -1.57%
Ethereum: 1,915.52 +2.98%

Fresh Market Headlines & Economic Data:

Wall Street falls as growth stocks slide; inflation concerns, rising yields weigh

Bitcoin tanks 10% after Elon Musk says prices seem high

Yellen favors higher company tax, signals capital gains worth a look

Consumer confidence in Canada hits 16-month high on reopenings

Brent oil climbs back above $63 with Goldman seeing more gains

Germany ‘looking towards recovery’ as industry drives up business morale

German economy likely to shrink before new bounce, Bundesbank says

ECB is ‘closely monitoring’ nominal bond yields, Lagard says

The UK is set to announce how it will exit lockdown

Upcoming Potential Catalysts on the Economic Calendar

Fed Bowman speech at 8:30 pm GMT
New Zealand Retail Sales at
China House Price Index at 1:30 am GMT (Feb. 23)

What to Watch: BTC/USD

BTC/USD 1-Hour Crypto Chart
BTC/USD 1-Hour Crypto Chart

With no major catalysts expected ahead from FX, we’re stepping away from fiat currencies for a sec to check out the massive volatility spike in crypto to start the new week.

On the one hour chart above of BTC/USD, we can see the market fell almost 20% after hitting all time highs just above the $58K handle this past weekend.

The news is pinning the drop on Elon Musk’s comment this weekend that the “price seems high”, but who knows if that was really the main catalyst now.

Whatever that may be, the pair dropped all the way to trade below the $47K handle before buyers stepped up in size to take the pair back to current levels around $53K. Longer-term hodlers likely saw this as a massive buying opportunity given that no significant changes were made to the BTC narrative.

If you’re a trader, you’ve gotta love this price action, and now that we’ve got big moves both ways, it’s possible we could see choppiness from here.

And if you’re in that camp, a move back down to the range between $47K – $50K (previous area of strong interest / 61% Fib area / $50K major psychological area) is likely to draw in buyers, while a pop back up to the $55K – $58K (previous ATH) range will likely draw in some selling / profit taking.

For the longer-term players, you may wanna stay out for now and wait for volatility to settle, or lay out nibblers at various prices. This could be an opportunity to build a position at better prices for your longer-term ideas.