Bitcoin price analysis for February 8-14: coin could rise above $42,000 this week
Strong institutional demand could propel Bitcoin to a new all-time high this week
Bitcoin’s recent correction did not result in aggressive profit-booking from the institutional investors. On the contrary, data suggests that investors continued to buy at lower levels. Twitter users recently pointed to a large chunk of Bitcoin moving out of Coinbase, which signalled buying by an institutional investor.
And it is not only the institutions who are buying, Glassnode analysts pointed out that 200 more Bitcoin wallets increased their holdings to 1,000 Bitcoin or more in 2021. This shows investors are viewing the dips as a buying opportunity.
Business intelligence firm MicroStrategy recently held a virtual conference to educate corporations about Bitcoin. MicroStrategy CEO Michael Saylor tweeted that the webinar was attended by over 8,197 representatives from 6,917 different enterprises.
If a few more corporations decide to add Bitcoin to their treasuries, it could start the next leg of the up-move.
Let’s do the Bitcoin price trend analysis of the weekly chart to determine the critical resistance levels the bulls will have to overcome to resume the uptrend.
Bitcoin price technical analysis: weekly chart
Bitcoin resumed its uptrend last week and soared 17.39 per cent to close at $38,884. The rally suggests aggressive buying on dips.
If the bulls can drive the price above the $40,000 to the $42,036.45 overhead resistance zone, the uptrend could extend to $50,000. The bears are likely to mount a stiff resistance at this psychological level.
The rising moving averages and the relative strength index (RSI) in the overbought zone show that bulls are in control.
Contrary to this assumption, if the BTC/USD pair turns down from the overhead resistance, the bears will try to pull the price down to $32,287. A strong bounce off this level may keep the pair range-bound for a few more days.
The bears will announce their arrival if they can sink the price below the 20-week EMA. Such a move could start a deeper correction towards $20,000.
What is your sentiment on BTC/USD?
The Bitcoin price weekly analysis shows that the bulls are in command. Let’s perform the BTC price analysis of the daily chart to see if it also projects a bullish picture.
Bitcoin price technical analysis: daily chart
Bitcoin rallied to $41,009.50 on February 6 but the bulls could not sustain the price above $40,000, which shows the bears are selling at higher levels.
However, the positive sign is that the bulls have not given up much ground. This shows that buyers are accumulating on every minor dip. The pair has formed an inside day candlestick pattern today.
If the bulls can push the price above $40,000, the pair will make one more attempt to clear the $42,036.45 hurdle. The upsloping moving averages and the RSI in the positive zone indicate that bulls are in control.
Contrary to this assumption, if the bears sink the price below $37,364, the pair could drop to the 20-day EMA and then to the 50-day SMA. A break below this support could signal that bulls are losing their grip.
How to trade Bitcoin this week
Traders who had held their long positions last week got an opportunity to benefit from the rally this week. Traders can consider trailing their stops higher to $37,000. If the bulls again fail to sustain the price above $40,000, profits could be booked.
Traders may avoid bottom fishing if the price turns down and breaks below the 50-day SMA because such a move could suggest a deeper correction. There are no reliable setups that offer a buying opportunity at the current levels.
Trade Bitcoin to US Dollar - BTC/USD chart
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