Although Bitcoin’s support level couldn’t hold $43,000, it hasn’t shed much loss and could bounce back next week if bulls gather strength around the mark.
Grayscale Bitcoin Trust’s outflows could have become the main reason for the crypto market’s muted returns in January. In the last few days, though, the other spot ETFs have seen much higher inflows, reversing the trend. Meanwhile, Bitcoin’s support level has also seen range-bound movements and could aim to cross $43,000 next week. February’s historical positive returns could also work in favor of the market if bulls take BTC beyond $45,000 soon.
Bitcoin is trading just above its 20-day moving average but below its resistance levels at $43,000. If BTC sustains its trading range over its 20-day moving average for a longer time, sentiments could turn bullish. Moreover, buyers may also see the dip in the market as an opportunity to accumulate BTC in the long term.
On the other hand, if BTC goes below its 20-day moving average soon, sellers may attempt to pull it below $42,000. Then BTC could face a price retest at $40,000. That could be unlikely with the current crypto market conditions, as trader sentiments are relatively stable.
Among other tokens, ETH has been stuck in a price range for several days, between $2,100 and $2,400. Other altcoins also witnessed static movements over the last two days.
BTC/USD 1D price chart
Bitcoin is currently trading at around $42,850 on February 4, 2024, with BTC/USD trading lower by a margin of 0.7% in the last 24 hours. Bitcoin’s market cap was trading at around $839 billion.
BTC/USD is trading higher than its 20-day EMA (42,802.77), as BTC’s 24-hour volume was at around $12 billion. The crypto market cap decreased by around 0.77%, trading above $1.64 trillion. BTC’s year-to-date returns are at 2.39%.
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