Bitcoin (BTC) continues to linger just below $43,000 on Feb. 7 as markets gear up for what promises to be a lively week.
Another step up overnight took BTC/USD briefly over $43,000 before consolidating with $42,000 as support, data from Cointelegraph Markets Pro and TradingView shows.
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Fresh losses remain firmly on the table
For market pundits, the question now is which support levels can sustain on longer timeframes, which would be ideal as a foundation for further upside and what bulls expect as new resistance.
For popular trader and analyst Rekt Capital, the 50-week exponential moving average (EMA) is now an important zone to crack, this originally collapsing over Christmas.
“BTC is just below the blue 50-week EMA, a key Bull Market moving average,” he summarized Monday.
“The EMA represents a price point of ~$44000 and may figure as a resistance. However, turning it back into support would restore macro bullish bias for Bitcoin.”
Highlighting a range stretching back through 2021, Rekt Capital nonetheless acknowledged that a rejection at current levels opens up the possibility of a significant retracement to its lows at $30,000.
“Not only has BTC formed a January 2022 Higher Low relative to July 2022… But February is already forming a Higher Low relative to January 2022 Promising signs thus far,” he added in one of multiple further Twitter posts.
Previously, fellow trader Pentoshi cited the 2022 yearly opening price near $46,000 as a potential resistance headache should upside continue.
To the downside, meanwhile, trader Anbessa called $38,900 and $37,800 as targets.
#BTC LTF Update
– hidden bull div played out ✔️
– bounce from 25MA 2h TF ✔️
-> Trading at channel top again, TP
-> shortterm r:r ratio pullback like in the projection
– early potential bearish divergence 3h TF & lower
— AN₿ESSA (@Anbessa100) February 7, 2022
Funding rates begin to react to gains
Turning to the odds of a continuation, Filbfilb, co-founder of trading suite Decentrader, noted that negative funding rates showed that the majority still favored further losses.
Related: BTC price returns to $43K — 5 things to watch in Bitcoin this week
Any squeeze to the upside would thus increase short liquidations, shaking out bearish positions and ideally freeing up the market in the process.
A green lad emerges.
Is it different this time?
— filbfilb (@filbfilb) February 7, 2022
Funding rates on major derivatives exchanges remain broadly negative, but sentiment is showing itself in an increasing upward trend.