Bitcoin (BTC) held above $41,000 for the weekend after a late rise that took the largest cryptocurrency to a two-week high on Friday.BTC/USD 1-day candlestick chart (Bitstamp). Source: TradingView “The only good bear is a dead bear” Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD held up again on Saturday, with the pair’s correlation with stock markets firmly in its sights. Analysts had highlighted the $39,600 area as an important line to cross and move towards new support to ensure further upside potential. In the event, this was not a problem for bulls as Bitcoin “gagged” within seconds as it approached $40,000 to continue higher. Amid the renewed vigor, the mood was noticeably more cheerful than in days or even weeks. Popular analyst Credible Crypto compared the current move to the fourth quarter of 2020, in which Bitcoin challenged $12,000 before breaking its three-year all-time highs. Characteristic of a 1-2, 1-2 or the beginning of a new impulse are strong movements up, superficial pullbacks, continuation. The first chart is from 11-12k for our breakout and is moving towards 60k. The second card is now, and what I expect to play to further confirm that our big 5th has begun. $BTC pic.twitter.com/gDvt4hsQoq—Credible Crypto (@CredibleCrypto) February 5, 2022 “The only good bear is a dead bear,” trader and analyst Pentoshi joked as the market continued to climb to local highs of $42,000. were less convinced of the sustainability of the current move, with data showing significant high volume sales starting when $40,000 reappeared. CT cheered on a 40k break, but orders of $100k+ still sell this rip #BTC pic.twitter.com /IfACqoRBs5—Materials Scientist (@Mtrl_Scientist) Feb 4, 2022 As Cointelegraph reported, signs were already circulating that there would be a rebound mainly thanks to the tried-and-true Relative Strength Index (RSI) that broke a two-month downtrend in late January “Probably worth noting is the price at historical levels from oversold to supply/demand in the chain, and futures traders have discontinued their sale,” statistician Willy Woo noted as he compared similar RSI outbreaks. Fear lingers for wary hodlersTurni Sentimentally, the sense of caution that has characterized the market since its peak of $69,000 in November has persisted. Related: Price Analysis 2/4: BTC, ETH, BNB, ADA, SOL, XRP, LUNA, DOGE, DOT, AVAX Index “fear” was still the predominant emotion among market participants even after the price jump. The Index, which uses a basket of factors to produce a nominal sentiment score of 0-100, measured 33 at the time of writing, has spent most of January below 25 – the “extreme fear” zone. However, the last time the Index was this high was almost six weeks ago, just after Christmas. Crypto Fear & Greed Index (screenshot). Source: Alternative.me
Source link
