KEY INSIGHTS
- The weekly MACD formed a dead cross, signaling potential bearish momentum.
- BTC/USD trades below the 50MA across timeframes, indicating short-term downward pressure.
- Strong resistance at $108,104.6 with critical support at $91,664.9 and $73,563.5.
Introduction
Review of the Previous Week:
Bitcoin moved within a tight $6,000 range last week, reflecting low volatility. The weekly MACD formed a bearish crossover, hinting at a possible long-term trend reversal and weakening bullish momentum. Support and resistance levels remain crucial to watch.
Market Changes Since Last Week:
On February 3rd, speculation about sovereign wealth funds adopting Bitcoin sparked a brief rally, but prices stayed between $96,000 and $99,000. On February 7th, BlackRock increased its MicroStrategy stake by 0.91% to 5%, signaling strong institutional confidence. These events highlight the impact of government and institutional moves on Bitcoin’s price. Let’s move to the technical analysis.
Detailed Analysis
Weekly Chart: Key Price Levels
Summary
The weekly MACD’s dead cross injects bearish pressure. Resistance at $108,104.6 limits rebounds, while MACD and Stochastic suggest a continued downtrend. Support at $91,664.9 and $73,563.5 could be key in determining the next move.
Daily Chart: Key Price Levels
- Trend: Neutral
- Support: $91,664.9
- Resistance: $108,104.6
- MACD: Negative histogram with a dead cross, signaling short-term bearishness.
- Moving Averages: BTC trades below the 50MA ($98,400.1) but above the 200MA ($79,181), showing short-term pressure but long-term support.
Summary
The daily chart suggests caution. While long-term support holds, bearish MACD signals hint at further declines if support breaks.
4-Hour Chart: Key Price Levels
- Trend: Neutral
- Support: $91,664.9
- Resistance: $108,104.6
- MACD: Positive histogram with a golden cross, hinting at a bullish shift.
- Moving Averages: BTC trades below both 50MA ($98,063.7) and 200MA ($100,002.1), indicating overall bearish sentiment.
Summary
Mixed signals. MACD suggests a bullish shift, but price remains below moving averages. Resistance at $108,104.6 is key.
1-Hour Chart: Key Price Levels
- Trend: Neutral
- Support: $91,664.9
- Resistance: $108,104.6
- MACD: Negative histogram nearing neutral, indicating indecision. Both golden and dead crosses signal short-term volatility.
- Moving Averages: BTC trades just below the 50MA ($96,630.7) and 200MA ($97,697), suggesting slight bearish pressure with breakout potential.
Summary
The market is at a turning point. Hovering near moving averages with mixed MACD signals, traders should watch for breakouts.
Conclusion
Bitcoin shows mixed signals across timeframes. The weekly dead cross suggests long-term bearishness, while shorter timeframes hint at potential recovery. Resistance at $108,104.6 remains a major hurdle, with $91,664.9 as crucial support. Watch the 4-hour and daily charts for trend confirmation that could define Bitcoin’s next major move.
Beginner Friendly Glossary
Resistenace Line
A price level where selling pressure prevents further rise. Breaking this line often signals a potential uptrend.
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Death Cross
Occurs when a short-term moving average crosses below a long-term moving average, indicating bearish momentum.
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Breakout
When the price moves above resistance or below support, suggesting the start of a new trend, especially with high volume.
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