Smaller pullback for Bitcoin and Ethereum price
Bitcoin chart analysis
After a turbulent month that included paying whales and taking profits, the cryptocurrency market grew to a collective estimate of over $ 2 trillion. The market leader – Bitcoin, tested the desired level of 45,000 dollars but failed to stabilize above it. The fear and greed index for Bitcoin essentially demonstrates the overall market sentiment towards BTC, taking into account factors such as volatility, surveys, social media activity, dominance, and others.
On February 8, the index rose to 48, a neutral state after a period of almost three months when it was in a state of fear or extreme fear.
The fear and greed index peaked at 45 on December 22, after which bitcoin made a slight upward trend from $ 46,000 to $ 52,000 before suffering another decline.
After that, the index mostly fluctuated within the limits of “Fear” and “Extreme Fear.” The latest change marks a reset in terms of sentiment. But the weekly bulls, however, do not cancel the possibility of returning to the red zone of movement. The current result really reflects a sense of optimism among crypto traders and investors. Bitcoin faced current resistance in the $ 45,000 area and a moving MA200 average. CryptoPotato reported that millions of short positions were liquidated as a result. Average financing rates have remained low, which means traders are wary of avoiding significant liquidations in the near future. The price increase also comes with low volatility in the BTC options market.
- We need a new positive consolidation and a price return above the MA200 moving average and $ 44,000.
- After that, we have to pay attention to the zone at $ 46,000, from the beginning of January, from which the previous price drop to $ 32987 was made.
- If the price continues to climb, the next important zone for potential next resistance is $ 50,000- $ 52,000.
- The $ 52,000 price was the last high in 2021, and after that, we have this current price withdrawal.
- We need to continue to raise prices and form a new negative consolidation.
- Then we look at the potential support zone at $ 42,000, and if it doesn’t last, we’ll probably move on to the $ 40,000 psychological level.
- Additional support at that level is our MA20 moving average, and a little lower, around $ 38,000, we come across the MA50 moving average.
- If bearish pressure continues, the price will continue to fall to this year’s support zone of around $ 34,000.
Ethereum chart analysis
The price of Ethereum today ran into an obstacle at the $ 3,200 price tag, and additional resistance to us is the MA50 daily moving average. The last time the price of ETH was above the MA50 moving average was December 9 last year. The current pullback is not great, and the price of ETH has stopped at $ 3,000, consolidating from now to $ 3,095.
- We need continued positive consolidation and testing the $ 3,200 price tag.
- Break prices above would gain support in the MA50 moving average, and after that, we could say that our next target is $ 3400 level.
- The MA200 moving average is in the zone around $ 3600, and as long as we are below it, bearish pressure will be present on the chart.
- We need negative consolidation, which would further drag the price to the previous support zones.
- Our first potential support is the break level at $ 2800, then the $ 2600 level, the place of the previous price rejection.
- Additional support is provided by the bottom line of this growing channel.
- If it doesn’t last, we continue lower towards the $ 2200 level, this year’s minimum zone.