Bitcoin (BTC) price activity supported analysts’ expectations on Feb. 12 that BTC will test $40,000 again. The trader wants to prevent an “ugly” weekly close at all costs
According to Cointelegraph Markets Pro and TradingView figures, BTC/USD hit a low of $41,741 on Bitstamp before rebounding above $42,000.
Following the release of US CPI data, calls for a return to $40,000 or even below emerged, putting the steely bulls’ determination to the test. The pair’s ascension was halted.
According to Michael van de Poppe of Cointelegraph, the results were still inconclusive, although prudence was clearly required in short-term trading.
When asked if “Bitcoin is staring at the same resistance,” he illustrated potential support and resistance levels.
Others, on the other hand, believe that Bitcoin’s long-term downturn is coming to an end. A well-known Twitter expert, Credible Crypto, warned that “the chances are stacked against you.”
Let’s Bring Up The Word “Fear”
After a dramatic drop late last week, the atmosphere in the cryptocurrency market has taken a new hit.
Three days in the “neutral” area on the Crypto Fear & Greed Index were enough to re-establish “fear” as the prevailing element among traders.
The Index was 44/100 on Saturday, down from a high of 54/100 on Wednesday
The trade suite discusses January’s “severe terror” drop into the bottom “severe terror” zone. According to Decentrader’s research of historical behavior patterns, a mood reset had already occurred.
“Acute panic attacks that persist for days are an indication that ordinary market participants are unprepared. The $BTC price has risen dramatically in the last two weeks.” This was reported by analysts in a market update on Friday.
To capitalize on the clear technical significance of this level, along with trade with a stop loss below $40k is a simple and appealing alternative. If we break far below the $40k line, it appears that $30k is a foregone conclusion.
The scenario is similar to Bitcoin’s in that $3k represents an intriguing buy-the-dip opportunity but that a break below opens the door to a decline as low as $1,700 in Ethereum.
The current price behavior of the ETH/BTC spread does not bode well for Ethereum in the near future, but it could be a false breach above the 0.08 resistance level in December and a relapse to the downside, signaling larger Bitcoin outperformance in the future, until and unless it is reclaimed.
There are two conceivable outcomes here: either Bitcoin outperforms the broader market, which is excellent for altcoins and other risky digital assets, or Bitcoin underperforms the broader market, which is terrible for other digital assets.