The mood in the cryptocurrency ecosystem turned to cautious optimism on February 7 when bitcoin (BTC) bulls managed to push the price above the support level of $ 44,000 with several positive developments, including the announcement of the Big Four validator. KPMG has added BTC and Ether (ETH) to the company’s coffers.
Data from Cointelegraph Markets Pro and TradingView show that after hovering around $ 42,500 in early February 7, a midday buying wave pushed Bitcoin to a high of $ 44,500 as short traders rushed to close their positions.
1-day BTC / USDT chart. Source: Trading View
Here is what many analysts say about Bitcoin’s move on February 7 and what can happen next when traders look to take advantage of the sudden increase in price and momentum.
“Good place for shopping”
The sudden rise in BTC has generated many positive comments from holders of cryptocurrencies, while more experienced traders, including Twitter user Pentoshi, are taking the opportunity to lock in some profits and focus on what comes next.
4-hour BTC / USD chart. Source: Twitter
“Now the last rallies are taking place. I’m looking for the last increase, but to $ 44,000- $ 46,300. In my opinion, this is a good place to close long positions and retake. ”
Traders remain in a bearish trend for bitcoin
Bitcoin analyst and Twitter user Allen Au talked about how active traders perceive the recent BTC price action, and posted the following chart showing how the price action on February 7 affected the futures markets.
Full liquidation and perpetual financing rates in the future. Source: Twitter
As shown in the chart, short positions worth $ 71 million were liquidated due to falling open interest rates, which Au indicated is a “short squeeze” that could “continue to drive prices higher.” He further explained:
“The perpetual futures funding rate is negative despite BTC above $ 44k. Traders are still bearish on bitcoin.”
Au highlighted the following major resistance levels for Bitcoin at $ 44,500, $ 46,500 and $ 47,500.
Related: Global Cryptocurrency Adoption may soon reach excessive buoyancy: Wells Fargo. Report
$ 45,000 indicates a possible trend reversal
A look at Bitcoin’s long-term price action has been given by cryptanalyst and Twitter user Sheldon Snapper, who has posted the following chart showing that BTC has returned to the trend it has been in since the end of 2020.
1-day BTC / USDT chart. Source: Twitter
“$ 45,000 will give us our first big high and be a good indicator of a potential trend reversal.”
A slightly different perspective on the long-term price behavior of BTC was offered by cryptanalyst and Twitter user TechDev, who posted the following chart and suggested that “Bitcoin has been correcting / consolidating for almost a year.”