Bitcoin (BTC) Price Gives Indications of
Bitcoin experienced a 10% rebound after falling to a 50-day low of $38,500 on January 23rd. Market data trends suggest that investors are positioned for a bullish start to February.
The drop in Bitcoin’s price came after the SEC approved a spot ETF on January 11th, leading speculators to capitalize on media hype and secure profits. This caused BTC to reach its lowest point in 50 days.
However, bullish Bitcoin investors have defended the $39,000 support and are now making strategic moves to stage a significant price rebound in February.
In the last three days, BTC’s open interest has increased by $350 million, indicating a boost in investor confidence and market participation. This increase suggests a potential price breakout in the near future, even though the price has consolidated within the $41,000 to $42,000 range.
Alongside the increase in open interest, spot market traders have also made bullish moves. Data from CryptoQuant shows a substantial movement of BTC off exchanges since the rebound began on January 25th. This suggests that investors are opting for long-term storage options, which could have a bullish impact on Bitcoin’s price.
With investors choosing long-term storage, the selling pressure on Bitcoin is expected to decrease significantly. The BTC shifted from exchanges, valued at approximately $220 million, could contribute to a price breakout towards the $45,000 level.
Based on market data trends and the shift towards long-term storage, it is likely that Bitcoin will retest $45,000 in February. The Bollinger Bands signal indicates key reversal points that could impact Bitcoin’s price action in the coming days. Currently trading at $43,088, breaking above the 20-day simple moving average, BTC’s short-term market momentum has become bullish.
The next major resistance is now at the upper Bollinger Band at $45,300. However, if the bears manage to force a reversal below $38,000, it could invalidate this bullish narrative. The bulls are likely to regroup around the $38,572 area to prevent further losses.
