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Bitcoin Price Analysis: A Green Weekend and a Greener Prospect for the Investors

Since Friday evening, the market has made a huge uptrend in the price development, jumping from $36,000 to $41,000 in hours.
Bitcoin Price Analysis for 07-02-2022

Bitcoin / US Dollar: General Overview

Since Friday evening, the market has made a huge uptrend in the price development, jumping from $36,000 to $41,000 in hours. Moving above 10 % in some hours is considered an extraordinary move in the traditional markets but in the crypto space is just a normal weekend.

 

Price action has started to consolidate powers since the last week when there was a constant move towards the $40,000 line, with minor fluctuations back to the average line at $35,000. As we have written during the previous week, there was a need for a sharp move that will break the $40,000 resistance level.

 

This move was evident on Friday and till then, Bitcoin’s price has not fallen below the $40,000 line, touching today almost $43,000. The most important aspect at this moment will be a support level formation above the $40,000 line.

 

The road towards new high levels will pass from the previous consolidation levels that were formed during the bear market. The first level lays around $44,000 and depicts the current situation in the Bitcoin market. The price will either remain on those levels or the path towards the higher ones will pass from the next zone around $47,000.

 

Many analysts are focusing solely on the $47,000 zone as more institutional investors entered the market around this point, creating a great amount of market depth. The next moves in the market will include a consistent effort towards the $47,000 and more investors to be willing to enter below the $47,000 point.

 

It’s important to highlight that the period where the price range was sustained between $35,000 and $40,000 was only 1 week. As we can remember from the previously bearish market in the summer of 2021, this situation lasted around 2 months. From this perspective, the outlook can be much more optimistic and well-developed, also showing that the market is mature enough at those levels to overcome them easily.

 

The short-lived situation around $35,000 can be considered as a positive signal as the majority of investors are willing now to place their money again and they think that the bears have passed for now.

 

The moving averages crossed each other on Saturday, creating a bullish perspective in the Bitcoin market and making more investors believe that the bear market is over for now. The stability above the $40,000 line will confirm the trend and show that multiple crosses will not end up with mixed results for the market.

 

The trading volumes have been sustained into normal levels, with a minor spike during Friday, marking the pass into the bullish trend.

 

 

 

Bitcoin / US Dollar: General Overview
Bitcoin / US Dollar: General Overview in Bitcoin Price Analysis, image from Tradingview

Bitcoin / US Dollar: Short Term Overview

In the short-term window, the short-lived bottom at $35,000 is much more evident than before, showing that the bears didn’t last for long. The market maturity indicates also that climbing into a higher level could be much easier and it will be correlated with the consolidating power from every resistance/support level that the Bitcoin gains.

 

The gains in the short-term period are considered significant but the majority of investors are already looking for the next high levels that will enable them to transcribe over-returns in their portfolios.

 

Apart from that, we should be careful from a bearish perspective if there is a sudden correction in the market, from profit-taking actions. Some investors started to fear when the price was dropping continuously and they start to plan their next moves. The most feared out of them will be willing to withdraw funds and positions as soon as the market goes, which is the current situation.

 

If those feared investors start to liquidate positions now, there might be a short correction, that will be probably absorbed from the investing community and the existing market depth.

 

Bitcoin / US Dollar: Short Term View
Bitcoin / US Dollar: Short Term View in Bitcoin Price Analysis, image from Tradingview

Bitcoin / US Dollar: Day Trading Overview

When we wrote the Friday Bitcoin Price Analysis article, we highlighted that the price will move below $37,000 before rebounding again at higher levels. Well, we were right and after the minor “dip” at $37,000, the price climbed to $41,500 and remained there for the entire weekend.

 

At this moment, the volatility in the Bitcoin day trading window is not large, indicating that the market cannot provide day traders with more opportunities to exploit in this framework. Another consolidation zone around $44,000 might give more opportunities at that level.

 

Bitcoin / US Dollar: Day Trading View
Bitcoin / US Dollar: Day Trading View in Bitcoin Price Analysis, image from Tradingview

Bitcoin / US Dollar: Indicators

MACD index (Moving Average Convergence Divergence) is looking to be “greener” than ever, showcasing a good amount of positive momentum, which has driven the price at higher levels. A similar pattern in the MACD index can be viewed around October 2021, when the price was starting its journey towards the all-time high level of around $69,000.

 

We hope that this scenario will be replicated and we will see more uptrend in the next few days.

 

The RSI index (Relative Strength Index) moved to value = 60, showing that the market has moved in the bullish phase, while there is more space to cover in the next few days. Climbing a little more during the next days, more resistance points will be activated and we might see a halt in the bullish trend, which remains a normal reaction for the Bitcoin market.

 

Bitcoin / US Dollar: Indicators
Bitcoin / US Dollar: Indicators in Bitcoin Price Analysis, image from Tradingview

Bitcoin Price Analysis: Conclusions

The positive trend that was established during the weekend showed us that the Bitcoin market is ready to take over the bears and find new ways towards new high levels. The first point at $44,000 is close to being conquered and everyone in the market stays on the bright side.

 

The next days will be another fighting period for bulls and bears as the market psychology remains more fragile than ever before…

 

Read our previous Bitcoin Price Analysises here!

George Foroglou

George Foroglou

George Foroglou heard first time about Bitcoin in a Christmas dinner in December 2013. As Finance student, he published articles regarding Bitcoin adoption, blockchain applications and IoT monetization strategies. From 2017, he is an active trader in the Bitcoin and other altcoins market, using mostly Technical Analysis. He has worked for plenty web portals, giving insightful articles about technical and fundamental analysis.

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