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Technical Analysis for BTCUSD for 3rd February 2022

Bitcoin Collapses from Key Resistance, will BTC Plunge back to $33.5k?

Fidelity Investment Head of Sales has said the mega brokerage firm has been mining and accumulating Bitcoin since 2014. They expect Bitcoin to be mainstream by 2026.

Past Performance of BTC

The primary trend for Bitcoin prices is bearish, reading from the performance in the daily chart. Although traders are upbeat, the rejection of higher highs—especially from the middle BB—could suggest weakness in buyers. Currently, there is a bearish engulfing pattern as BTC prices cave in from the dynamic resistance line of the 20-day moving average.

Bitcoin Technical Analysis

Technically, the downtrend is defined and clear, as per the BTCUSDT price formation in the daily chart. When the trading community is apprehensive, sellers are pressing lower. With a double bar formation signaling bears complete with a bearish engulfing pattern with relatively high trading volumes, sellers may find entries while targeting $33.5k in the immediate term. This is more the case if BTC prices plunge below the immediate support at $36.5k. A pullback from spot rates to over $39.3k would reinvigorate buyers. However, this is a long shot.

What to Expect of BTC

Sellers are in a commanding position, reading from the formation in the daily chart. Since gains of the past three days have been reversed, traders may find entries to hitch the primary trend, targeting $33.5k—January 2022 lows—in the medium term.

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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