HomeMarketsBitcoinBitcoin price analysis for 02/07: Hello 50% Fib, we meet again

Bitcoin price analysis for 02/07: Hello 50% Fib, we meet again

The month of January has yielded plenty of Bitcoin price action. Not all of it was positive, but in the end, the overall uptrend has remained intact successfully.

As alluded to during the previous price analysis, the path to $9,878 has been wide open for a while. Now, the time has come to look at what riches await beyond these thresholds. 

Bitcoin Price Action Remains Bullish

There is a lot of interesting momentum brewing for Bitcoin as of late. Especially this week has yielded some prominent highs and lows. While the dip to $9,127 was a bit of a scare, the overall push remains in place. That is  evident when looking at the 30-day chart, which still boasts an 18.1% gain. 

As is often the case, there can be some unexpected volatility. The Bitcoin price is one of the more volatile assets found anywhere in the world. That volatility can work out positively as well. When BTC pushed from $9,127 to $9,695.86 in quick succession, hardly anyone was complaining. 

Even today, there is ample liquidity across exchanges to keep the momentum alive. All of the BTC/USDT pairs are contributing nice volumes. For reasons unknown, BHEX is well ahead of the competition. Another relatively unknown exchange claiming to generate high volume.

BTC/USDT Technical indicators

Fintoism BTCUSDT 0207

Bollinger Bands: While still wide open, it appears that the Bollinger Bands will narrow ever so slightly. That may indicate an accumulation phase for BTC, or a major breakout in either direction. Given how a dip has already occurred, it seems likely to assume that a push to higher values will come into play very soon.

Moving Averages: Albeit the MA200 is still moving down, the MA20 crossed it in a bullish manner. There is also a chance that the MA50 will create a bullish cross with the MA200 as well. With both averages moving up , the uptrend seems to be confirmed. 

RSI: Back into overbought territory for Bitcoin, but that has never been a bad thing either. In fact, it is another bullish indicator for the world’s leading cryptocurrency. The push to $10,000 remains a go, but effectively reaching those values is a different matter altogether. 

Fibonacci Retracements (BTC/USD): The past two weeks have been somewhat challenging in terms of Fib levels. Bitcoin has struggled to overcome the 38.2% Fib initially, but it has now secured that level successfully. A push to the next level will be challenging, even though it can take the Bitcoin price to $10,107.94. 

Fintoism BTCUSD Fib

That level will obviously act as another potential turning point where this uptrend is concerned. The 63.8% Fib is still a long way to go, at $10,993.15. Given how the 50% Fib can often signal another trend reversal – as it has done a few times in recent years – it is impossible to predict how this level will act this time around. 

Resistance Levels: The next resistance level will be the 50% Fib, which sits at $10,107.94. It has been rejected multiple times in late 2019 and early 2020. A successful break would be incredibly bullish, but there are hardly ever any certainties in this industry. 

JP Buntinx
JP Buntinx
JP Buntinx is passionate about cryptocurrencies, fintech, blockchain, and finance. He currently resides in Belgium.


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