Bitcoin prediction this week February 3 to 9: Bitcoin likely to move up gradually to $10,000
Do the charts confirm the bullish sentiment?
The total Bitcoin futures trading volume on the Chicago Mercantile Exchange, or CME, has topped over $100 billion since its launch in 2017.
This is according to Tim McCourt, CME Group Managing Director and Global Head of Equity Index Alternative Investment Products. This shows that institutional involvement in Bitcoin is gradually picking up.
Morgan Creek Capital CEO Mark Yusko, in a recent interview with Max Keiser on the Keiser Report, said that portfolios that even did a nominal investment of 1 per cent in Bitcoin have outperformed just about everything in the past five years. Yusko also said that Bitcoin offers a ten-to-one downside capture, which makes it one of the most asymmetric assets he has ever seen in his career.
With institutional players gradually entering the crypto space, Bitcoin is likely to head higher in the long-term. However, until a strong trend forms, traders can generate better returns by swing trading. So let’s do the Bitcoin price prediction for this week to determine the next possible move.
Bitcoin price prediction chart: weekly
Bitcoin resumed its up move last week. The bulls carried the price above the minor resistance at $9,187.95, which shows that buyers are keen to initiate long positions on any minor correction or consolidation. This shows that the sentiment has turned positive.
Both moving averages are gradually sloping up and the RSI is in positive territory, which shows that the bulls have the upper hand. The next target on the upside is $10,550. Traders can anticipate the bears to defend this resistance.
However, if the price does not give up much ground from $10,550, the rally is likely to extend to $12,000. The bullish view will be invalidated if the bears sink the price back below the moving averages and the horizontal support zone of $8,000 to $7,853.95. However, there is a low probability of this occurring.
The Bitcoin analysis of the weekly chart points to a gradual move higher. Does the Bitcoin price analysis of the daily chart also confirm the bullish sentiment? Let’s study the chart.
What is your sentiment on BTC/USD?
BTC to USD chart: daily
After the rally from January 26 to 28, Bitcoin has entered a tight range. If the bulls can push the price above $9,600 and sustain it, a rally to $10,550 will be on the cards. Both moving averages are sloping up and the RSI is in the positive zone, which suggests that bulls are in command.
The rise from close to $6,400 levels has been gradual with intermittent pullbacks and consolidations. This shows accumulation by the stronger hands. As the price moves higher, we expect the momentum to pick up.
Our bullish view will be invalidated if the price slips below the 20-day EMA. If this support gives way, the pullback can extend to the 50-day SMA. The trend will turn negative if the BTC to USD pair dips below the $8,200 to $7,853.95 support zone.
The Bitcoin price analysis of the daily chart shows accumulation by the stronger hands. Is this a good time to add to positions or has the up-move run its course? How can the traders take advantage of this bullish sentiment?
Bitcoin price this week February 3 to 9: How to trade it
Bitcoin is likely to resume its up move and rally towards $10,550 in this week. Traders can anticipate a stiff resistance at this level; hence, they can book partial profits close to $10,500 and keep the stops on the rest at $8,000. Booking complete profits on the long positions at $10,550 is not recommended because if the bulls can scale above it, a move to $12,000 will be on the cards.
FURTHER READING: Trading Bitcoin for beginners