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Technical Analysis for BTCUSD for 1st February 2022

Bitcoin Bulls Aiming at $40k, is the BTC Price Turning the Corner?

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Past Performance of BTC

There are encouraging higher highs in the BTCUSDT daily chart. Although these are positive signals of strength, sellers are still in a commanding position below $40k. Currently, bulls appear to be in control, striving to unwind losses of mid-January and, later, those of the better part of Q4 2021.

Bitcoin Technical Analysis

The path of least resistance is southwards from a top-down perspective. However, in the short-term, aggressive traders may load the dips targeting $40k provided prices trend above $36.5k—the immediate support line.

Trading volumes remain relatively low versus the climactic losses of January 21 and 22, positioning sellers on the upper hand from an effort-versus-results analysis.

Given this formation, risk-averse traders could wait for a defining reaction at around $40k before either doubling down on shorts or recalibrating their positions to reflect changing fortunes for Bitcoin.

As we advance, a close above $40k would be defining for optimistic Bitcoin bulls calling for a buy trend resumption from around the 78.6 percent Fibonacci retracement level of the H2 2021 trade range.

What to Expect of BTC

Losses have been profound and consequential. All the same, BTCUSDT prices could bottom up reading from the candlestick arrangement in the daily chart. Risk-on traders can wait for reactions at $40k or $36.5k before committing. A breakout in either direction could shape the short to medium-term price action.

Resistance level to watch: $40k

Support level to watch: $36.5k

Disclaimer: Opinions expressed are not investment advice. Do your research.

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