Bitcoin (BTC) was hovering near $23,000 on Feb. 7 as a key chart phenomenon reappeared for the first time in 18 months.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
The Battle of the Bitcoin Crosses Begins
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD moving sideways overnight after avoiding volatility in the first Wall Street open of the week.
Although the pair failed to flip $23,000 support, the pair still saw a potentially significant event in the form of a “golden cross” on the daily chart on February 6th.
This refers to the rising 50-period moving average crossing the 200-period moving average. The last time this occurred on daily timeframes was in September 2021 – two months before Bitcoin’s recent all-time high.
BTC/USD 1-day candlestick chart (Bitstamp) with 50, 200 MA. Source: TradingView
The cross has been closely watched by some crypto analysts, with Venturefounder, a contributor to on-chain data platform CryptoQuant, arguing that $25,000 could resurface as a result.
“Bitcoin Goldencross just happened!” he summarized in a Twitter reaction.
“This potential correction could see BTC retesting $20,000 (200 DMA and key support) and then testing $25,000 next in the bullish case. Make $25k support and it’s a nail in the coffin for the bears.”BTC/USD commented chart. Source: Venturefounder/ Twitter
The picture remained complicated on the day thanks to an impending “reverse cross” on weekly timeframes, in which the 50-period moving average stayed on course to fall below the 200-period moving average – a phenomenon dubbed the “death cross.” is known because it has reverse adverse effects on BTC price action.
BTC/USD 1-week candlestick chart (Bitstamp) with 50, 200MA. Source: TradingView
On-chain monitoring resource material indicators left uncertain whether the golden cross alone could propel BTC/USD higher.
“Whether it will be enough to get a legitimate test of the $25,000 range remains to be seen,” it wrote in part of the Binance order book comment.
An accompanying chart showed major resistance in the form of ask-liquidity at $23,500 – the first major hurdle bulls face in the event of an upward move.
BTC/USD order book data (Binance). Source: Material Indicators/ Twitter
Powell speech ‘single key factor’ of macro week
Another factor on the radar for Feb. 7, meanwhile, came in the form of comments from the US Federal Reserve.
Related: Will BTC Price Retest $20,000? 5 things to know in Bitcoin this week
Several Fed officials are due to speak ahead of next week’s macro data prints, with Chair Jerome Powell’s words expected to be the most significant in terms of market move potential.
“Nothing special this week, the only key factor to watch is Powell tomorrow afternoon. Maybe one more momentum to correct and then the party should keep moving higher,” explained part of Cointelegraph contributor Michaël van de Poppe’s Twitter analysis on Feb. 6.
Van de Poppe added that meanwhile, “buy the dip” could be a viable option for altcoins, as Material Indicators noted has already been the case for bitcoin whales.
The views, thoughts, and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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