Bitcoin Bulls Looking Above $45K To Validate Bullish Trend Reversal – Cryptovibes.com – Daily Cryptocurrency and FX News
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Bitcoin reclaimed its support at $44,000, which prompted some of the analysts to suggest closing out longs while looking for a close above $45,000 to indicate the development of a bullish trend reversal.
On February 7, the mood across the crypto space shifted to cautious optimism as the Bitcoin bulls managed to bid the crypto’s price back above $44,000 with the help of multiple positive developments. Some of these developments include the announcement that “Big Four” auditor KPMG has now added Bitcoin and Ether to its corporate treasury.
Data acquired from TradingView shows that after oscillating around $42,500 in the early morning sessions on Monday, a midday wave of purchasing lifted the price of bitcoin to a high of $44,500 as the short traders struggled to close their positions.
Here is what some of the analysts concluded from Monday’s move from Bitcoin and what might come next as the traders aim to capitalize on the abrupt surge in price and market momentum.
‘Good Spot To Close Longs Out’
This abrupt move up in bitcoin has resulted in a plethora of up-only bullish proclamations by the cryptocurrency holders, while the more experienced traders, like the pseudonymous Twitter user Pentoshi, are using this occurrence to secure some profits and reposition themselves for what may come next.
Pentoshi said:
“Taking the last highs now. Looking for one last spike up but $44,000-$46,300. In my opinion, good spot to close longs out and re-evaluate.”
Traders Still Bearish On Bitcoin
The insight into how the active traders are perceiving the latest bitcoin price move was offered by Bitcoin analyst and Twitter user Allen Au, who posted this graphic outlining how the futures markets were affected by February 7’s price action.
As shown in the graphic representation, around $71 million in Bitcoin shorts were liquidated in the move to go along with a drop in open interest, which Au believes is a ‘short squeeze’ that may continue to power a price surge. He also explained:
“Perpetual futures funding rates are negative despite BTC breaking above $44K. Traders are still bearish about BTC.”
Au said that the next massive resistance levels for Bitcoin are located at $44,500, $46,500, and $47,500.
$45K Signals A Possible Trend Reversal
A review of the long-term price action for Bitcoin was offered by crypto analyst and pseudonymous Twitter user Sheldon the Sniper. He posted the following chart indicating that BTC has moved back into the upward trend it has been on since late 2021.
Sheldon said:
“$45,000 will give us the first major higher high and will be a great indication of a possible trend reversal.”
A slightly different perspective of the long-term bitcoin price action was provided by crypto analyst and pseudonymous Twitter user TechDev, who published the following chart and indicated that “Bitcoin has been correcting/consolidating for nearly a year.”
TechDev explained:
“Likely in a running flat which could turn into a running triangle. The next impulse is poised to be a big one.”
The general crypto market capitalization now stands above $2 trillion and Bitcoin’s rate of dominance is 41.5%, based on data acquired from CoinMarketCap.
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