The cryptocurrency market is experiencing a decline on Feb. 2 amid increased volatility in global financial markets.
Data from Cointelegraph Markets Pro and TradingView reveals that Bitcoin (BTC) saw a drop from around $38,200 to $36,800 after a wave of selling pressure.
Various analysts and traders share their insights on Bitcoin’s price action and key levels to watch in the future.
Bulls Face Challenges Below $36,700
A crypto trader known as ‘HornHairs’ highlights significant support and resistance zones for Bitcoin, pointing out a strong support level near $37,400.
According to the analyst, if the price holds above this level, any move back to the $38,000s may be a bearish retest unless $38,700 is reclaimed.
However, a bearish scenario could lead to further downside, with the chart suggesting that bulls are facing challenges below $36,781.
‘HornHairs’ mentioned, “A drop below $36,700 and a move to take out range low seems likely, seeing as we took out the range high yesterday.”
Fourth Attempt at Breaking Trend?
Analysis of Bitcoin’s descending price action since its peak in November is presented by a trader called ‘Daan Crypto Trades’, emphasizing the struggle Bitcoin has faced in breaking above this trend.
‘Daan Crypto Trades’ noted, “Everyone seems to be watching this same line now which could cause for some fakeouts. So be cautious for that. It’s currently testing the diagonal for the 4th time. When will it break?”
Expectations for Bitcoin’s Future
Technical analyst ‘Decodejar’ offers a forward-looking analysis on Bitcoin’s potential next moves, suggesting a probable downward trajectory for the leading cryptocurrency.
Decodejar discusses a common chart pattern circulating among analysts, indicating a “bearish ABC wave 4 expanded flat, ending below last year’s lows.”
Despite this pattern, Decodejar believes that the correction phase is nearing its end at current levels and expresses confidence in a continued bullish market consolidation, stating, “I see a fully intact bull market that is consolidating.”
The total cryptocurrency market cap now stands at $1.729 trillion with Bitcoin’s dominance rate at 41.1%.
The opinions expressed in this article are those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment decisions involve risks, so it’s recommended to conduct thorough research before making any decisions.
