empty
05.02.2024 12:31 PM
Technical Analysis of BTC/USD for February 5, 2024

Bitcoin Bulls Eye Resistance: Breakout on the Horizon?

Spotlight on Bitcoin's Market Dynamics as Bulls Gather Strength

Key Takeaways:

  • Facebook and Instagram's Advertising Shift: Facebook and Instagram now permit advertising for Bitcoin ETFs, significantly broadening cryptocurrency exposure and potentially increasing adoption among older demographics less engaged with digital assets.
  • Bullish Market Indicators for Bitcoin: The BTC/USD pair is demonstrating bullish momentum, trading near crucial resistance at $43,865. With a strong bounce from the 100 MA and positive market sentiment, there's potential for an upward breakout.
  • Pivotal Week for Bitcoin Traders: The sentiment remains strongly bullish, with 66% favoring bulls. Key support at $42,217 and resistance at $43,865 are pivotal for traders, with the upcoming week likely to be decisive for Bitcoin's short-term trend.

This image is no longer relevant

Cryptocurrency Industry Shifts: The advertising landscape for cryptocurrencies is evolving. Facebook and Instagram's decision to allow advertisements for Bitcoin ETFs marks a significant change. This opens doors for increased cryptocurrency adoption and reaches a broader investor base, including those unfamiliar with digital assets.

Impact of Social Media Advertising: Facebook and Instagram's vast user base, exceeding 2 billion monthly active users, offers unprecedented exposure for Bitcoin ETFs. Targeted advertising can now tap into demographics previously less engaged with cryptocurrencies, notably older investors.

Google's Role in Cryptocurrency Promotion: Google's recent policy changes also favor cryptocurrency products, including Bitcoin ETFs. This broader acceptance in major online platforms signals a growing mainstream interest in digital assets.

Bitcoin's Technical Market Outlook: Bitcoin, trading near $43,865, shows bulls regaining market control. A notable bounce from the 100 MA on the H4 chart and rising momentum indicate a bullish sentiment. Key support levels are identified at $42,217 and $41,848. For further gains, bulls must overcome the short-term trend line resistance.

This image is no longer relevant

Day Trading Analysis for Bitcoin:

Moving Averages: Bitcoin fluctuates between the 50-period DEMA and 100-period EMA, suggesting a consolidation phase. The DEMA indicates shorter-term trends, while the EMA guides longer-term directions.

RSI (Relative Strength Index): Currently above 50, the RSI points to bullish momentum but remains clear of the overbought zone, indicating potential for further upward movement.

Price Action: Early bullish engulfing patterns showed strong buying pressure. However, recent pin bars and a bearish engulfing pattern hint at selling pressure at higher levels.

Scenarios for Day Traders:

Bullish: A sustained move above the 50-period DEMA could signify continued bullish momentum, possibly reaching the next resistance or recent highs. An RSI rise above 50, pushing towards 70, would confirm increasing buying pressure.

Bearish: Rejection at the 50-period DEMA, followed by a downward trend, might signal a shift in momentum. If the RSI declines below 50, it could indicate weakening bullish sentiment, opening short trade opportunities.

Intraday 1H Indicator Signals:

  • Majority of technical indicators (19 out of 23) favor a Buy.
  • Moving averages predominantly indicate Buy (16 out of 18).

Sentiment Overview: The sentiment leans heavily bullish, with recent trends maintaining this outlook.

Weekly Pivot Points: Pivot points serve as crucial market markers for potential trend changes and support/resistance levels.

WR3 - $44,629WR2 - $43,693WR1 - $43,312Weekly Pivot - $42,765WS1 - $42,376WS2 - $41,823WS3 - $40,887

Useful Links
Important Notice

The begginers in forex trading need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp market fluctuations due to increased volatility. If you decide to trade during the news release, then always place stop orders to minimize losses.

Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes. For successful trading, you need to have a clear trading plan and stay focues and disciplined. Spontaneous trading decision based on the current market situation is an inherently losing strategy for a scalper or daytrader.

#instaforex #analysis #sebastianseliga

Summary
Urgency
Analytic
Sebastian Seliga
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Trading Recommendations for the Cryptocurrency Market on July 17

Bitcoin attempted several times yesterday to break above the 120,000 level but failed to succeed. Ethereum, on the other hand, completed its task and easily jumped from 3,100 to 3,300

Miroslaw Bawulski 09:05 2025-07-17 UTC+2

Some market makers fix profits

Meanwhile, as Bitcoin rebounded to the $119,000 level, some major players in the cryptocurrency market were quick to take profits after recent large price movements. Investment firm Ark Invest

Jakub Novak 13:22 2025-07-16 UTC+2

Trading Recommendations for the Cryptocurrency Market on July 16

Yesterday, Bitcoin experienced a modest correction but overall remained above the $117,000 mark, clearly indicating that its bullish prospects remain intact — it just needs a catalyst. Ethereum climbed back

Miroslaw Bawulski 09:51 2025-07-16 UTC+2

Bitcoin in limbo

Bitcoin buyers appear to be somewhat confused, as the FOMO currently dominating the market could backfire on those trying to jump on the "last train", — which, in reality

Jakub Novak 15:34 2025-07-15 UTC+2

Crypto week

While Bitcoin and Ethereum are undergoing a correction and doing so rather effectively, lawmakers and cryptocurrency advocates in the United States are preparing for one of the most important weeks

Jakub Novak 11:19 2025-07-15 UTC+2

Trading Recommendations for the Cryptocurrency Market on July 15

Bitcoin has dropped from its all-time high of $123,000 and is currently trading at $117,000, which only increases its appeal. Ethereum has also fallen back below the 3,000-dollar level, after

Miroslaw Bawulski 09:31 2025-07-15 UTC+2

Bitcoin outpaces Amazon in terms of market cap

Bitcoin has reached a new all-time high near $122,000, surpassing Amazon in market capitalization. This event is undoubtedly a landmark moment in the history of cryptocurrencies and traditional finance

Jakub Novak 10:52 2025-07-14 UTC+2

Trading Recommendations for the Cryptocurrency Market on July 14

Bitcoin hit another all-time high above $122,000, continuing its winning streak. Ethereum has also strengthened and is trading above $3,000, but has not yet reached the all-time high. Bitcoin's rally

Miroslaw Bawulski 09:53 2025-07-14 UTC+2

Bitcoin Forecast for July 14, 2025

Bitcoin Bitcoin is showing extreme boldness amid the general market sentiment of risk aversion. However, if such sentiment continues, the upper limit of Bitcoin's growth also becomes visible — 125,190

Laurie Bailey 05:31 2025-07-14 UTC+2

Litecoin is attempting to test its nearest resistance level, Friday, July 11, 2025.

Litecoin, Friday, July 11, 2025. Litecoin managed to break through and close above its pivot level. Although there is potential for a correction, positive fundamental factors provide an opportunity

Arief Makmur 08:00 2025-07-11 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.