Bitcoin (BTC) stalled around $23,000 on February 7 as a key charting phenomenon occurred for the first time in 18 months.
The Battle of Bitcoin Crosses Begins
Data from Cryptooshala Markets Pro and trade view demonstrated sideways movement of BTC/USD the day before, avoiding volatility at the first open of the week on Wall Street.
Despite failing to turn $23,000 into support, the pair nonetheless saw a potentially significant event in the form of a golden cross on the daily chart on February 6.
This refers to an ascending 50-period moving average crossing the 200-period moving average. The last time this happened was on the daily timeframes in September 2021 – two months before Bitcoin’s last all-time high.
Some cryptanalysts have been keeping a close eye on the crossroads, with Venturefounder, a member of the network data platform CryptoQuant, claiming that $25,000 could reappear as a result.
“Bitcoin Golden Cross Just Happened!” He summarize in the Twitter reaction.
“This potential correction could see BTC retest $20k (200 DMA and key support) and then, in a bullish case, retest $25k. Make a $25,000 backing and that will be the nail in the coffin for the bears.”
During the day, the picture remained complicated due to the upcoming “crossover” on the weekly timeframes, where the 50-period moving average continued to fall below the 200-period moving average – a phenomenon known as the “death cross” due to its reverse harm. impact on BTC price behavior.
It remained unclear to the resource monitoring materials on the network whether only a golden cross could push BTC/USD higher.
“Whether this is enough to get a legitimate test in the $25,000 range remains to be seen,” the post reads. wrote in the commentary part of the Binance order book.
The attached chart showed major resistance in the form of demand liquidity at $23,500, the first major hurdle that bulls have to clear in case of a move higher.
Powell’s ‘single key factor’ macro week speech
Another factor that drew attention on February 7 was the comments from the US Federal Reserve.
Is BTC price about to retest $20K? 5 things to know about Bitcoin this week
Ahead of next week’s macro release, several Fed officials were scheduled to give speeches, and Chairman Jerome Powell’s words are expected to be the most significant on the market’s potential to move.
“Nothing special this week, the only key factor to look at is Powell tomorrow afternoon. Maybe one more cleanup to fix and then the party should continue rallying upwards,” part of a Twitter analysis by Cryptooshala contributor Mikael van de Poppe. declared Feb 6
Van de Poppe added that at the same time, “buying the dip” could be a viable option for altcoins, as Material Indicators noted that this has already been the case with bitcoin whales.
The views, thoughts and opinions expressed here are those of the authors only and do not necessarily reflect or represent the views and opinions of Cryptooshala.
Credit : cointelegraph.com
