Bitcoin began the first week of February falling below $42,000. Bitcoin price movement continues to stay within a range that limited January’s gains to only 0.6%. So, what could be next for the market? Bitcoin bulls, still struggling in the region below $40,000 to mid-range, appear to lack the real momentum needed to overcome selling pressure and challenge higher ranges.
What’s Happening on the Bitcoin Front?
Bitcoin’s most recent weekly close around $42,550 was the second highest level of the year 2024. Following this, according to data from TradingView, the BTC/USD pair faced selling pressure but managed to rise to $43,166 at the time of writing. Thus, the bid liquidity maintained the current interest range within a broader range that Bitcoin has been moving for over 150 days. Popular investor Skew mentioned in his latest spot market analysis that there is a limit bid supporting the overnight price movement from further down.
After surpassing the two-year high of $49,000, the key level to overcome, reminding us of mid-January memories, was marked at $43,100. In another post on X, Skew stated:
“What I’m looking for today is whether the price continues to maintain the 1H/4H trend and whether buyers sustain a move above the downtrend line at the $43,100 level.”
An attached chart included features such as both simple and exponential moving averages as well as a sloped resistance line on the 4-hour chart.
Prominent Analyst Highlights Intriguing Data
In another analysis, both the Relative Strength Index (RSI) and Bollinger Bands started showing signs that volatility might return. As analyst Matthew Hyland pointed out over the weekend, the RSI reset to lower levels while the spot price consolidated on weekly time frames. Currently, the weekly RSI is at 68.9, just below the critical level of 70 that often accompanies major price increase periods.
Meanwhile, Hyland shows that the 3-day Bollinger Bands chart indicates a significant squeeze with Bands tighter than any point since late October. The famous analyst shared this issue with his followers in a post on X.
