- Losing $7,500 support was detrimental for Bitcoin as the next stop could be $6,500.
- Bitcoin must resume the uptrend above the initial resistance at $7,331 to pave the way for gains towards $8,000.
Bitcoin price has remained lethargic in action after it gave up $7,500 support. The recovery from Monday’s trip below $7,200 has not managed to clear the resistance at $7,400. BTC is trading at $7,300 following a downside correction from an intraday high around $7,412.
According to Joe DiPasquale, the CEO of BitBull Capital, a crypto fund a research firm, Bitcoin’s “the next stop would be $6,000,” especially after breaking below $7,500 support. Recovery will continue to drag because of the low volumes bring recorded. DiPasquale said via a tweet:
“If the current support at $7,500 is breached conclusively, the next stop would be $6,000. The maximum upside, meanwhile, is limited to $9,500. A break down is more likely than a break upward, however, due to low volumes, repeated new lows, and low sentiment.”
Bitcoin Confluence Detector
Bitcoin initial resistance is seen at $7,331. A cluster of indicators calls the same zone home, turn, making it impenetrable. Some these indicators range from the SMA ten 15-minutes, SMA five 15-mins, SMA 100 15-mins, previous low 4-hour, Bollinger Band 1-hour middle and SMA 200 15-mins among others.
If the buyers managed to pull Bitcoin above the resistance above, the rest of the journey towards $8,000 will be relatively smooth. However, various hurdles a $7,483, $7,710 and $7,938 will still give buyers a hard time.
As far as support is concerned, $7,255 is the first anchor, currently highlighted by the Fibo 23.6% daily and the Fibo 23.6% one-month. Other subtle support areas include $7,104, $6,952 and $6,573.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Top 3 Price Prediction: Bitcoin, Ethereum, Ripple: When all signs point north
The Crypto market continues to show bullish signals. Still, a trade-per-trade stance is being implemented as markets are highly elevated since January's 40% rally.
Vechain Price Prediction: No one wants to buy the top
VeChain price continues to display bullish cues, making it a digital asset worth keeping on the immediate watch list. The uptrend may surge at any moment, despite the skeptical market sentiment amongst traders.
Can institutional inflows postpone Solana price from crashing by 21%?
Solana price has stuck to sideways momentum over the last few days as the broader crypto market noted mixed sentiments. However, movement is expected out of the altcoin now that interest from big wallet holders in the asset has risen.
UK central bank to impose 20,000 GBP limit on “Britcoin”, set to launch the CBDC before 2030
While the world is dealing with the hurdles that come with cryptocurrency regulations, many other countries are working on their own form of digital assets. MoTg AY as Central Bank Digital Currency (CBDC), the digital money will be printed and distributed by none other than the Central Bank again.
Bitcoin: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher
Bitcoin (BTC) price is at an inflection point as it continues to rally amid multiple sell signals on lower time frames. The Nonfarm Payrolls (NFP) report, including the unemployment rate and average hourly earnings, is set to be announced on February 3 at 1330 GMT.