Bitcoin Price Analysis 4th Feb 2019: Bulls are yet to arrive?

Bitcoin price analysis
Image source: Tradingview

Bitcoin Price Analysis 4th Feb 2019: Bulls are yet to arrive?

The sustained ‘crypto-winter‘ has created a cloud of uncertainty in the direction of Bitcoin Price. The delay in the Bakkt launch and an extended date of ETF decision has neutralized the positive catalyst in the market. The bear market has lasted for 58 weeks and still shows no apparent signs of a trend reversal is observed.

Analysis of 1-Hour Chart – BTC/USD

bitcoin price analysis
1-Hour Chart of USD/BTC on Bitfinex

There are four Doji single-chart patterns identified on the chart which suggests the indecision in the market. The day traders action seems to be subsidized considerably. The Bullish Marubuzo observed in the morning also lost its stop-loss target at $3530 confirming the bearish market.

Analysis of Daily Chart – BTC/USD

On the daily chart, the signal is bearish. The chart seems to be approaching a critical point of action. Furthermore, if a comparison with the last such uncertain period during Oct-Nov is made, the charts suggest starking similarities suggesting a move downwards to $2390. The RSI signal is also 40 which is still above over-sold conditions implying there is further room downwards.

The volume has also decreased on the weekend, which might be an oversold condition but also lack of buying interest. The market sentiment leans towards lack of buying interest with traders waiting on the sidelines looking for action.

Price Chart Patter Similarity Between Bitcoin prices
Daily Chart of Bitcoin on Bittrex

Final Say 

The new support seems to be building at $3370 which is an important support line. The resistance to the upper side is observed at $3530 which if broken would test to $3700 resistance ahead. Moreover, the market can be expected to have a quiet week as well with 10-20% convergence of the triangle is still in formation, a break above 3450-3500 would be a bullish signal.

The market is still indecisive, and market sentiments are bearish; hence the traders must look to maintain a neutral position and look for a clearer signal before placing their orders. The fundamentals also suggest long-term positive but short-term stagnation due to delayed regulations, liquidity problems with altcoins and development and associated operational cost spent on progress could delay the bull a bit longer.

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