BITCOIN : Price Action

(Wed, 3 Feb 2021). Bitcoin prices continue to edge higher after bulls successfully managed to break above the key psychological level of $32,000, pushing price action through the upper bound of the descending triangle, formerly serving as resistance. The move confirmed that the ‘Bitcoin Bubble’ has not yet burst and that further gains cannot be ruled out.

Currently, BTC/USD price action remains encapsulated by the key Fibonacci retracement levels of the short-term move (27 Nov 2020 low - Jan 2021 high), forming a zone of confluency between the 38.2% retracement level, providing support at $32,154 and the 23.6% Fibonacci retracement level, holding resistance at $35,915. Meanwhile the Commodity Channel Index (CCI) remains in overbought territory, with a reading of 168 confirming that bulls remain in control, at least for now.

If prices manage to fall below current support, bears may able to push prices lower towards the psychological level of $30,000. On the contrary, if bulls continue to take charge, then it may open the door for continuation towards January highs, around the $40,000 mark.

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