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Technical Analysis for BTCUSD for 2nd February 2022

Bitcoin Retests a Multi-Month Resistance Line as BTC Bulls Accumulate above $35k

MicroStrategy is doubling down on BTC, buying the dip, and adding a further $25 million of BTC, details on February 1 on shows. The public company is now the world's largest holder of BTC.

Past Performance of BTC

The BTCUSDT price is relatively firm as buyers attempt to unwind steep losses from mid-November 2021. There are positive indicators that prices could be bottoming up as traders build on the end of January 2022's rejection of lower lows. Technically, sellers are still in control, provided prices are below $40k and trending within the wide-ranging bear bars of January 21 and 22.

Bitcoin Technical Analysis

Bitcoin fundamentals are improving by the day as whales buy the dip, improving general sentiment. This could contribute to building a solid base from around the 78.6 percent Fibonacci retracement level of the H2 2021 trade range. 

Even though buyers may have the upper hand at present, retesting the middle BB, a solid break above $40k complete with high trading volumes may ignite further demand. The resulting lift-off would nullify bears of the past ten weeks, paving the way for suppressed bulls. 

In anticipation of this formation, aggressive BTC buyers may load the dips above $36.5k, setting sights on $40k. On the flip side, a dump from the 20-day moving average below $36.5k shifts price action to favor sellers aiming at January 2022 lows of around $34k.

What to Expect of BTC

In the immediate term, BTC bulls have the upper hand. However, the uptrend would be clear above the psychological resistance at $40k. Meanwhile, if BTCUSDT crumbles below $36.5k, price action will swing in favor of sellers.

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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