Bitcoin closed January above $100K for the first time, fueling speculation of a bull run. Traders are closely watching key levels for signs of continued momentum amidst high volatility and liquidations.
Is Bitcoin Ready to Take Off?
Right now, it seems like Bitcoin is showing some early signs of bouncing back. Traders are glued to their screens, watching for any sign that it’s going to break through resistance levels. One analyst, BigCheds, pointed out a pattern called a “Morningstar” on the one-hour chart. The source explained that this pattern suggests $101,700 could be the point where people start buying in big time – what they call taking “long positions.” However, they also cautioned that just seeing this pattern isn’t enough; Bitcoin needs sustained momentum to keep moving upwards. If it can’t hold those gains then we could see more selling pressure in this pretty volatile market..
The source shared a tweet from Bitcoinsensus which highlights the need for confirmation above resistance levels: “$BTC showing potential early signs of recovery, but confirmation needed above resistance.” This means traders are waiting for clear signals before making any major moves. Even though investors are being careful right now, Bitcoin has managed to stay above $100k for five days straight which shows some real strength in the market at these levels .
Price Swings and Market Mayhem
Things haven’t been entirely smooth sailing though. Bitcoin actually dropped a bit on February 1st, down by 1.54%, after already dropping the day before. Despite this, it managed to stay above that crucial $100,000 level, which is a big psychological support for many investors. The source revealed that Bitcoin’s market cap is now up to a whopping $1.98 trillion, showing that there’s still a lot of interest out there.
It seems like Bitcoin is having trouble staying above key moving averages, which indicates there’s still some bearish pressure in the market. A failed attempt to break above $105,000 led to a bunch of people selling off, which pushed the price down quite a bit. Trading volume has gone up too, which usually means there’s a lot of activity and potential for big swings. The source explained that $102,200 is a really important level for Bitcoin right now; if it can’t get back above that, we might see it drop below $99,800.
Bitcoin even dipped down to $99,000 at one point before starting to climb back up. It’s not just Bitcoin that’s been moving; altcoins (other cryptocurrencies) have been hit even harder with some losing almost double-digits! The source reported that all this volatility has caused over $500 million in liquidations in just the past day alone with over 400 million in the last 12 hours. That means about 250,000 traders had their positions automatically closed out because they didn’t have enough money to cover the losses, with one single liquidation on Binance being worth nearly $12 million! As Bitcoin tries to find its footing, traders are definitely on high alert for any sudden changes.
Source: Bitcoin Shows Early Recovery With 101 7k | Tronweekly.com
