Bitcoin (BTC), which was open at Wall Street on January 31, saw a welcome boost as new research showed a grim picture of near-term price action.
BTC/USD 1-month candle chart (Bitstamp). Source: TradingView
Trader “not interested in” longs below $38,500
Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD climbed to $38,000 Monday, reverseing a correction that occurred immediately after Sunday’s close.
While stocks gave some relief to bulls many analysts were cautious about Bitcoin, while higher levels close to $40,000 remained unchallenged.
After his most recent YouTube update, Michael van de Poppe, a Cointelegraph contributor, summarized that Bitcoin is “chopping around and fighting resistance”,
“Sub $38.5K is not interested in long entries unless bullish divergences occur over a longer timeframe. The minimum step is $37.5K.
Pentoshi, a fellow trader, said that there was a buy-in zone immediately below current levels.
“I believe you could likely bid 33-36k. Scale in and see the yearly open on BTC February. He said that he lost 33k on HTF and cut it” in Twitter comments.
The BTC/USD was trading at $37,700 at the time of writing. This is an increase of $1,100 over earlier lows.
BTC will continue to “range”
Others were less optimistic about Bitcoin’s future prospects.
Related: Bitcoin prices down 20% in 2022, after the worst January since 2018
Material Indicators, an analytics suite that tracks trends in on- and off-chain indicators, revealed that there had been no major change in tact since November’s Bitcoin crash.
As we near the monthly close, “Zoomed to a MACRO perspective of Bitcoin. Trend Precognition does not believe that Bitcoin has bottomed. It stated that it expected to continue the downtrend and said so on Twitter.
This perspective is compatible with those who believe that Bitcoin must reach a lower level to be able to overcome resistance.
Whalemap, a fellow monitoring resource, previously identified $27,000 in an area of support should the current range collapse.
#Bitcoin macro levels according to volume profile (the on-chain version) 27k looks to be the closest support in case 34k is lost pic.twitter.com/BgLQ2FZaO2
— Whalemap (@whale_map January 27, 2022
Cointelegraph has also compiled a list with potential price triggers over the next week.