Bitcoin (BTC) 2022 got off to a very bad start and market fears have continued to mount over the past month. Until yesterday afternoon then; then the price finally broke out of its downward trend where Bitcoin since November in zat.
Fastest day-to-day rise in a year
From Bitcoin dog broke through the resistance around $38,000 yesterday afternoon, then $39,600 and also $40,700 around midnight. Bitcoin has been pushing resistance around USD 41,700 since then after rising as much as 9.7%. It was the fastest rise in a single day on February 8, 2021:
Biggest daily percentage gain for Btcusd since Feb 8, 2021 pic.twitter.com/v84pT2SAuf
— bithedge (@bit_hedge) February 5, 2022
This price increase was accompanied by a small short press. According to data from Coinglass, approximately $100 million was received in the past 24 hours short positions liquidated.
Hard day for #Bitcoin shorts pic.twitter.com/X0hHOCEKSx
– On-Chain-College (@OnChainCollege) February 5, 2022
The increase was also accompanied by a highly volatile stock market. These markets became volatile earlier this week after some large companies such as Meta (Facebook) released their disappointing quarterly results. The publication of the US jobs report yesterday added to that.
Bitcoin continues to peg further from these stock markets after the correlation between bitcoin and market as the S&P500 and Nasdaq was very high for a long time.
#BitcoinThe selling spree of is overextended, as is our BTC risk signal. It’s not a question of if, but when the third leg will come up. First we need to see a decoupling from the $ SPY and understand this price correction.
Learn more about our BTC risk signal 👇https://t.co/9AosDEZyjY pic.twitter.com/TvCBTY9n5O
– Yann & Jan (@Negentropic_) February 4, 2022
Market word bullish
Due to the increase, general market sentiment is also starting to change considerably. Market fears were very high in the first month of 2022, but are now starting to ease rapidly. However, according to the fear & greed index, it is still high.
Bitcoin Fear and Greed Index is 33 ~ Fear
Current price: $41,500 pic.twitter.com/WrBoh3nNhK– Bitcoin Fear and Greed Index (@BitcoinFear) February 5, 2022
The increase was also finally accompanied by an increase in volume. That may indicate more bullish sentiment up to FOMO. However, keep in mind that it is still very low, partly due to the Chinese New Year and because the weekend has started again.
#BitcoinYesterday’s (Friday) real trading volume increased somewhat with this price pump. Good in relation to the last two months, but not too high overall. pic.twitter.com/OnF9qF0pWP
– Jan Wüstenfeld (@JanWues) February 5, 2022
Analysts uncertain about trend reversal
Still, opinions are currently divided as to whether a trend reversal for bitcoin has actually been confirmed. Some analysts are convinced that it is, while other analysts are even more cautious about this. Die stolzen $41,700 sind gut, ein entscheidender Kahn für die Türbremse, für einen trendigen, betörenden Preis. If there is enough momentum, however, there are still enough points above where there is likely to be a lot of resistance.
$ BTC make a nice jump today! Step back and look at higher timeframes on the Weekly. To close this candle above $43,000 would print a bullish inverted empire. If confirmed, the first possible target upside is $46.9K at 38.2 and POC. https://t.co/tZIHkSGHMp
— Dezentrader (@dezentrader) February 4, 2022
Daily Completion Update:
The daily candle closed above macro resistance, confirming a breakout and a possible ongoing trend reversal.
The daily volume signature shows increased volume on the breakout, making it a confirmed breakout.#Bitcoin pic.twitter.com/iRgykJ486C
– Kevin Svenson (@KevinSvenson_) February 5, 2022
Take Profit Update #Bitcoin #Krypto
✔ Continues to reflect mid-2021 recovery.
✔️ Indication that the soil may already be in. #NFA
✔️ The cancellation may already be in progress. pic.twitter.com/QtANPLZQjS
— Plan©️ (@TheRealPlanC) February 4, 2022
Just as the laser eyes marked the April high and the widespread talk of $100,000 marked the November high, the bulls who threw in the towel and predicted $20,000 marked the January low $ BTC https://t.co/ie13ijddTn
— Peter Brandt (@PeterLBrandt) February 4, 2022
Flipping 41k to support is the first major hurdle for #Bitcoinand then about 46k would confirm the reversal of this EWT pattern. https://t.co/DCzl0NZOqw pic.twitter.com/j48sXBj4q3
— Steve⚡ (@decodejar) February 5, 2022
Reference-www.nach-welt.com