From the low of 32,839, bitcoin has managed to recover more than $11,000 in the last two weeks. Currently, it is trading at 44,103 above the 6/8 Murray and below the 200 EMA.
On Feb 04, bitcoin accelerated its upside move when it broke the 21 SMA above the level 38,695.
The short-term trend is positive according to the 4-hour chart, but capped by strong resistance from the 200 EMA and below 8/8 Murray around the psychological level 50,000.
Since Bitcoin broke the 21 SMA, it has returned 18% in the last 4 days. If the upward trend continues, it is likely to approach resistance levels around the zone of 7/8 Murray in the next few days.
On the other hand, if this technical bounce is just a correction, it should resume the downtrend as long as it trades below the psychological level of 50,000.
For a continuation of the downtrend, BTC should find resistance and turn lower around the zone of 46,957 (200 EMA) and start a bearish path towards the levels of 40,000 and 35,000.
If the uptrend prevails, a breakout of the top 200 EMA will push BTC to the psychological level of 50,000. Above this resistance, the trend will change to the upside and a return to the key level of 60,000 is likely.
On the other hand, if bitcoin comes back and consolidates below 37,500, we could see a drop towards the area of 34,752 and in case it turns extremely bearish price of bitcoin could return to the psychological level of 30,000.
Support and Resistance Levels for February 8 - 9, 2022
Resistance (3) 48,459
Resistance (2) 46,512
Resistance (1) 45,315
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Support (1) 42,171
Support (2) 40,625
Support (3) 39,027
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Scenario
Timeframe Daily
Recommendation: sell bellow or if pullback
Entry Point 43,750; 46,957
Take Profit 4,625; 37,500
Stop Loss 44,500; 47,500
Murray Levels 37,500 (4/8), 40,625 (5/8), 43,750(6/8), 46,875 (5/8), 50,000 (8/8)
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