In the ever-volatile world of cryptocurrency trading, Bitcoin (BTC) continues to captivate traders with its intricate price patterns and potential setups. A recent insight from trader Crypto King highlights a classic PO3 setup unfolding on BTC, urging patience amid potential fakeouts. This Power of 3 (PO3) concept, rooted in smart money trading strategies, involves an accumulation phase where price ranges and builds positions, followed by a manipulative push, and finally the true directional move. As BTC hovers near key levels, understanding this setup could be crucial for spotting trading opportunities without falling into common traps.

Decoding the PO3 Setup in Bitcoin's Current Chart

The PO3 pattern, often associated with institutional trading tactics, starts with a ranging period where smart money accumulates positions at favorable prices. According to Crypto King's analysis posted on February 23, 2026, BTC is exhibiting this exact behavior: first, price consolidates and builds liquidity, setting the stage for manipulation. Then comes a quick fake push upward, potentially around the $76,000 mark, designed to lure in retail traders chasing the momentum. This fakeout aims to shake out weak hands before the real move materializes. Traders are advised not to chase these pumps, as doing so often leads to getting caught in reversals. Instead, staying patient and waiting for Bitcoin to 'show its hand'—revealing confirmed directional signals through volume spikes or candlestick confirmations—can lead to more calculated entries.

To contextualize this, let's examine Bitcoin's recent price action. Over the past week leading up to February 23, 2026, BTC has been trading in a tight range between $72,000 and $75,000, with trading volumes averaging around 500,000 BTC daily across major exchanges. This ranging phase aligns perfectly with the accumulation stage of PO3, where on-chain metrics show increased whale activity, such as large wallet transfers exceeding 1,000 BTC. If the fake push to $76K occurs, watch for resistance at that level, historically a point of interest from November 2025 highs. A rejection there could trigger the real move, potentially downward if bearish divergence appears on RSI indicators, or upward if supported by positive funding rates in perpetual futures markets.

Trading Strategies to Navigate BTC's Potential Fakeout

For traders eyeing this setup, key support levels to monitor include $70,000, a psychological barrier reinforced by the 200-day moving average as of February 23, 2026. Resistance at $76,000 could serve as the fakeout peak, with a possible pullback to $73,000 before the true expansion. Volume analysis is critical here; look for a surge above 700,000 BTC in 24-hour volume to confirm the real move. On-chain data from sources like Glassnode indicates that as of late February 2026, Bitcoin's realized price sits at $68,500, providing a strong floor. Pairing this with derivatives data, open interest in BTC futures has climbed to $25 billion, suggesting heightened leverage that could amplify volatility during the fake push.

In terms of trading pairs, consider BTC/USDT on spot markets for lower-risk entries, or BTC/USD perpetuals for leveraged plays. A patient approach might involve setting buy orders near $71,000 post-fakeout, with stop-losses below $69,500 to manage downside risk. If the real move breaks upward past $78,000, it could signal a bullish continuation toward $80,000, driven by institutional inflows. Conversely, a bearish resolution might target $65,000, correlating with broader market sentiment amid economic uncertainties. Remember, this setup emphasizes discipline—avoid FOMO-driven trades and rely on confirmed signals like MACD crossovers or Fibonacci retracement levels from the recent all-time high.

Broader Market Implications and Cross-Asset Correlations

Beyond the technicals, this PO3 setup on BTC has ripple effects across the crypto ecosystem. Ethereum (ETH), often moving in tandem with BTC, could see similar patterns, with its price around $4,200 as of February 2026 potentially testing $4,500 on a fake push. Stock market correlations are also noteworthy; with the S&P 500 rallying 2% in the week prior, driven by tech sector gains, BTC's risk-on asset status means a fakeout could coincide with equity pullbacks, offering hedging opportunities. Institutional flows, such as those from BlackRock's Bitcoin ETF inflows exceeding $1 billion weekly, add bullish undertones, potentially fueling the real upward move post-manipulation.

Market sentiment remains cautiously optimistic, with the Crypto Fear & Greed Index at 65 (Greed) on February 23, 2026. Traders should watch for external catalysts like Federal Reserve rate decisions, which could influence BTC's direction. In summary, this PO3 setup underscores the importance of strategic patience in trading. By focusing on verified price levels, volume confirmations, and on-chain insights, traders can position themselves advantageously, turning potential fakeouts into profitable opportunities. Always trade with risk management in mind, as cryptocurrency markets are inherently unpredictable.