Bitcoin (BTC) price has been hovering above $35000, with multiple Doji candles for the past few weeks, indicating uncertainty in the market. However, on 4th February, the bulls took the final leap and surged the coin price above the $40000 mark, suggesting a recovery opportunity for crypto traders.
Key technical points:
- Bitcoin Fear and Greed Index rests at 37 out of 100
- The daily RSI slope spikes above the neutral zone(50)
- The intraday trading volume in the BTC is $16.3 Billion, indicating a 46 % fall.
Source- Tradingview
In our previous coverage on Bitcoin price analysis, we summarized the correction phase in the BTC/USDT pair, which lost 52% of its value concerning the January 24th low($33184). However, the buyers defended this support with vigor and sustained the price above the $35000 mark.
After nearly two weeks of consolidation, the bulls took the upper hand and breached the combined resistance of $40000, 20-day EMA, and descending trendline, with a long bullish engulfing candle.
Bitcoin will likely retest the $40000 mark to determine if the breakout was genuine. If buyers managed to sustain above this level, the coin is expected to rally towards the next significant resistance of $45000.
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- Resistance level- $45000, $52000
- Support level- $4000, $35000
Technical indicators
The recent price jump has flipped the dynamic resistance of 20-day EMA into possible support. However, the buyers are likely to face the trend defining 200 EMA near the $45000 mark, which would provide better confirmation for bullish recovery.
Furthermore, the RSI(55) slope showed a sudden surge above the 14-SMA and the equilibrium(50), suggesting the bulls are back in the driver’s seat.
On-chain Analysis
- According to the Intotheblock platform, market speculation appears to be calmer as the number of Bitcoin addresses holding the asset for less than a month has declined by 32.07% since December 28th. Therefore, the buying pressure is now coming from long-term and medium-term holders who have accumulated at recent price levels.
- Bitcoin Fear and Greed Index value currently at 37 indicates slight improvement compared to yesterday’s reading at extreme fear(33).
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