Bitcoin (BTC) lingered near $23,000 on Feb. 7 as a key chart phenomenon hit for the first time in 18 months.
The Battle of the Bitcoin Crosses Begins
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD tracking to the side overnight, after dodging volatility on Wall Street’s first open of the week.
Although failing to return $23,000 for support, the pair nevertheless saw a potentially significant event on February 6 in the form of a “golden cross” on the daily chart.
It is the crossing of the rising 50-period moving average over the 200-period moving average. The last time this happened on daily timeframes was in September 2021, two months before Bitcoin’s last all-time high.
The cross has been closely watched by some crypto analysts, with Venturefounder, a contributor to on-chain data platform CryptoQuant, saying that $25,000 could reappear as a result.
“Bitcoin goldencross has just arrived!” he summary in a reaction on Twitter.
“This potential correction could see BTC retest $20,000 (200DMA and key support), then in the bullish case, test $25,000 next. Support $25,000 and that’s the nail in the bears coffin.
The picture remained complicated that day thanks to an upcoming “counter-crossover” on the weekly timeframes, where the 50-period moving average remained on track to drop below the 200-period moving average – a phenomenon known as the “death cross” for its inversely damaging effect. impact on BTC price action.
For on-chain watch resource material indicators, it remained uncertain whether the golden cross alone could propel BTC/USD higher.
“Whether that’s enough to get a legitimate test in the $25,000 range remains to be seen,” writing in a part of the comments on Binance’s order book.
An attached chart showed major resistance in the form of demand liquidity stacked at $23,500 – the first major hurdle for bulls to overcome on the upside.
Powell’s ‘single key factor’ speech of the macro week
Meanwhile, another factor on the radar for February 7 came in the form of comments from the US Federal Reserve.
Related: Is BTC Price About To Retest $20,000? 5 things to know about Bitcoin this week
Ahead of next week’s macro data printouts, several Fed officials were scheduled to speak, with Chairman Jerome Powell’s remarks expected to be the most important in terms of market upside potential.
“Nothing special this week, only key factor to watch is Powell tomorrow afternoon. Maybe one more sweep for correction and then the party should keep rallying,” is part of the contributor’s Twitter analysis. by Cointelegraph Michaël van de Poppe declared February 6.
Van de Poppe added that “buying the dip” might be a suitable option on altcoins in the meantime, as Material Indicators noted was already the case with Bitcoin whales.
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
