The price of Bitcoin (BTC) recently experienced a sharp spike, reaching $53,000, causing significant volatility in the market. This surge occurred against the backdrop of Wall Street's opening on February 20 and was perceived as a classic "fake-out," catching many traders off guard. However, the enthusiasm was short-lived, and the price of Bitcoin quickly retraced, losing all daily gains in less than two hours, dropping to $51,400.

At the time of writing, the price has slightly recovered to around $51,700. Open interest in Bitcoin futures, which is a traditional catalyst for volatility, reached a 26-month high this week, exceeding $22.5 billion according to CoinGlass data.

In response to the unsuccessful attempt to break the $53,000 price level, renowned trader Jelle advised his followers to scale down and not let charts on smaller time frames confuse them. He proposed two courses of action: either allow minor fluctuations to bother them or ignore the noise and stick to their long-term plan.

Michaël Van de Poppe, founder and CEO of trading firm MNTrading, emphasized that despite the current volatility, the overall trend remains upward. He also noted that interest in Bitcoin exchange-traded funds (ETFs) increased after the US public holiday, which could contribute to further Bitcoin price growth.