Bitcoin, the leading cryptocurrency, after a year 2022 in which it was affected by the ravages of the global economy, regulatory issues, and exchange failures, has again shown green numbers these first two months of 2022, and generated a feeling of improvement in the present and for the coming weeks.
On a previous occasion, we spoke with Anibal Garrido, a Venezuelan trader, and he explained to us the causes that generated this positive momentum in the price of Bitcoin, which has also restored confidence in the market.
Agree Garrido, heThe improvement in inflation numbers, the slowdown in the US dollar currency index last week, the recovery of the euro, and the calm in the crypto space after controversial bankruptcies and exchange closures have been the contributing factors. to observe the improvement in the market.
Currently, the price of Bitcoin is struggling with the resistance of USD 25,000, a positive number if we compare the previous levels below USD 20,000 in which it moved months ago.
market sentiment
Having said that, it is important to note the current market sentiment for Bitcoin, which according to the fear and greed index, is at 60%, a level of greed itself, as indicated by the explanation of this index. In other words, It can be interpreted that investors are confidently looking to reinvest in assets like Bitcoin, and possibly even looking at them as reserve assets against a possible economic downturn.
Bitcoin Technical Analysis
In another sense, for the purposes of technical analysis, with respect to Bitcoin, we can mention that the price of Bitcoin in the weekly chart, since the first week of January, it has not stopped increasing, thus being able to recover or stand above the 20-week moving average, a drawing that has not been seen since the beginning of April 2022.
Regarding the volume, Without a doubt, it has increased, showing greater clarity on the part of investors and less neutrality than the one seen between the weeks of November and December.
If we look at the chart again through the bollinger bands, we can see that currently the price reached the upper band, specifically coinciding with the resistance of 25,000 USD, and the crossing of the MA 50 and MA 200, the same one that shows a rearrangement of the moving averages, and in turn a contraction between both averages that in the coming weeks, which in case of expansion will mark an interesting range for the price of Bitcoin.
From another point of view, also it is necessary to consider the bullish scenario that, if Bitcoin were to overcome the resistance of 25,000 USD, a close stop would be at the level of 29,000 USD, as can be seen at the 1,618 level of the fibonacci extension, if not at the best-case scenario, barely over $30,500.
daily chart
Regarding the daily chart, In the first instance, a readjustment can be observed, at a more advanced level, of the consecutive moving averages (MA 20, MA 50, MA 100, MA 200), a bullish signal that, although it is advanced, is not complete because it is missing. confirm the complete movement of the 100 MA above the 200 MA, which if generated could originate that aforementioned movement in the weekly chart.
On the other hand, an overextension of the price outside the upper Bollinger band can be observed in previous days of this bullish move, it is quite possible that the price will retraceas it is doing at the time of writing this note, and test the level of USD 23,500, above the base band, and the 20-day moving average, which, if it is not so strong, in the event of a retracement, could be broken by taking the price up to 22,500 USD.
Finally, it should be noted that considering what has been described above, for the moment there are no signs for the price to go below 20,000 USDif it occurs, it is probably generated by some extraordinary event that surprises the market and can be considered a ‘black swan’.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
It may interest you:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.