Bitcoin Bulls Need To Retrace 2 Levels
Bitcoin Analysis predicts BTC price upside depends on whether two long-lost moving averages can break through to support. BTC is falling below $23,753, facing a sink-or-swim resistance test to confirm its macro breakout.
In a tweet on February 2nd, on-chain monitoring resource Material Indicators flagged key levels for support after BTC/USD rose above $24,001.
In what was ultimately a boon for BTC bulls, the US Federal Reserve delivered what risk-averse traders wanted to hear on February 1st.
When Jerome Powell said “disinflation,” people started betting that rate hikes would end sooner and that monetary conditions would return to normal more quickly.
The sentiment was visible across cryptocurrencies, with BTC price action reversing initial declines to see a six-month high of $24,251 on Bitstamp.
Although the following correction sent the largest cryptocurrency down around $500, sentiment has since remained stable.
Material Indicators claims that BTC/USD must now deal with two trend lines that have created resistance for much of 2022.
The 50-week and 200-week moving averages (WMAs) are used to show if a stock’s price is moving too high or too low. So far, the bulls can’t even try to go back up or support them.
Additionally, the two WMAs converge in a formation known as the “death cross,” where the bearish 50WMA crosses the 200WMA.
Nasdaq Crypto Index rose 37.2%
Last month, the index posted its third-highest monthly gain since May 2020, while Bitcoin itself saw its price rise 39.42%.
In a sign of market volatility, the Nasdaq Crypto Index booked a 37.22% monthly gain in January – the third highest since the NCI’s inception in May 2020.
Bitcoin’s (BTC) price posted its best month since October 2021 as it surged 39.42% last month – the largest cryptocurrency since January 2013.
The NCI, created by Nasdaq in partnership with Hashdex, includes a diverse portfolio of digital assets that provide an industry benchmark outside the price of BTC. As of June 2022, the basket included BTC, (ETH), (LTC), (DOT), (BCH), Uniswap (UNI), and more.