Same as in 2021 – The road to $40,000 is strewn with obstacles for the bulls who, after the foray of bitcoin (BTC) above $39,000, must already give ground to the bears. A sustainable bullish rally is in sight, but the possibility of another relatively large drop cannot be ruled out.
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Bitcoin at $37,000: bullish reversal to be expected
Bitcoin loses $38,000 today, February 2, 2022. Bitcoin price drops to around $37,110. Bitcoin trades at $37,418 at the time of writing and is currently recording a daily loss of 3.10%.
Crypto trader Ed shared a chart in his tweet today, while stating that “everyone is looking at a bearish trend line”. However, he invited his followers to focus on ROI which “no one is paying attention to” and “who is already out of this downtrend! “.
The daily and weekly RSI (14) stand at 36 and 39 respectively. They are both in the oversold or sold zone. The monthly RSI (14) at 52 is however in neutral territory. Should the bitcoin price still suffer further declines which would cause the weekly RSI (14) to lose a few points? before finally witnessing a bullish reversal over this period? Or can the markets already expect this trend reversal now?
Bitcoin below $37,000: probable return to $34,000
Trader Michaël van de Poppe signaled the danger of a loss of $37,000 which will be followed by a rapid drop “towards the lower limit of the region around $34-35K. »
Analyzing bitcoin price levels over a year, a tweet by Mikołaj Zakrzowski reveals that “we have almost exactly the same #Bitcoin price as 365 days ago “. Mikołaj Zakrzowski concludes that “in other words, the market is holding up”.
Institutions would be back in the markets and whales would be accumulating bitcoin, but these massive investments are not enough to break the last resistances below $40,000 at the moment. The ground gained by the bulls is immediately taken over by the bears which prevent any lasting upward recovery.
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