On February 21, Bitcoin maintained a value of $98,000, with bulls achieving their highest daily close in almost three weeks.
BTC/USD 1-hour chart. Source: Cointelegraph/TradingView
Bitcoin Trader Anticipates Six-Figure Return
Data from Cointelegraph Markets Pro and TradingView revealed that BTC/USD has been building on previous gains, closing the prior daily candle at $98,330 on Bitstamp.
Although Bitcoin (BTC) remains in a tight range, the recent price movements have offered much-needed relief to traders after several weeks of minimal volatility.
The recovery was further supported by US macro data, as initial jobless claims surpassed the median forecast by 4,000, hitting 219,000. This could indicate that the labor market may struggle under prolonged restrictive economic policies.
Current estimates from CME Group’s FedWatch Tool, however, still show an almost nonexistent chance of the Federal Reserve cutting interest rates at their upcoming meeting in March.
Fed target rate probabilities. Source: CME Group
Examining medium timeframes on BTC/USD, trader Patric H. noted that flipping $100,000 to a support level is a crucial next step.
A chart shared on X highlighted the necessity of breaching two descending trend lines.
“Awaiting a significant move in either direction,” he commented afterward.
BTC/USD 1-day chart. Source: Patric H/X
Another trader, Roman, identified $98,400 as a “pivot point,” suggesting it could lead to a $10,000 increase if the price surpasses that level.
“If we break 98.4k, I believe 108k is next,” the trader stated in an X post the previous day.
“I’m really pleased with how volume is declining while the price decreased in this range. Let’s hope for a breakout!”
BTC/USD 1-day chart. Source: Roman/X
Bitcoin’s Price Lags in Risk-Asset Rally
Consequently, Bitcoin has joined gold and equities as a rising risk asset, contributing to market gains.
Related: Bitcoin bull market can withstand a $77K BTC price drop in 2025 — Analyst
This week saw new record highs for both gold and the S&P 500, further highlighting the necessity for crypto markets to recover from significant Q1 losses.
“Gold has significantly outperformed the S&P 500 this year, achieving over double its year-to-date return. In 2024, gold and the S&P 500 demonstrated an unprecedented correlation of approximately 0.81,” noted trading resource The Kobeissi Letter in an X thread.
Gold futures vs. S&P 500 chart. Source: The Kobeissi Letter/X
Gold’s market capitalization reached $20 trillion for the first time, yet Bitcoin advocates remained largely unimpressed.
“Gold has reached a new all-time high! Congratulations to those who have invested in gold over the past five years! Your investment has nearly doubled!” remarked network economist Timothy Peterson, renowned for the paper “Metcalfe’s Law as a Model for Bitcoin’s Value,” on X.
“Historically, Bitcoin has doubled approximately every 16 months.”
Bitcoin vs. gold chart. Source: Timothy Peterson/X
This article does not offer investment advice or recommendations. All investments and trading activities involve risk, and readers are encouraged to conduct their own research when making decisions.
