BTCUSD – Weekly outlook for Bitcoin Price – 11th Feb 2022

Introduction

Online brokers and other Binomo investors who had short positions opened must have enjoyed the bearish trend that lasted for weeks, reports from other sources show that over $225 million have been liquidated by the short position online brokers. 

The trading sentiments seem to be changing as the market participants have seen a bullish run during the beginning of this trading week. The next direction of the number one coin is about to change from a bearish trend to a bullish trend as the market has shown weakness in the bearish direction

BTCUSD Technical Analysis

Monthly Chart Bullish 

Monthly Resistance Levels: 69000, 47989

Monthly Support Levels:  29296, 32933. 28911

The month of January closed at 38491 prices below the previous month still showing the Bears dominating the market in the last two months. The bears’ momentum created a low of 32933 below the close of the January candlestick. If the price direction should continue to be bearish, we may see the price of BTCUSD drop to the support zone of 28911. 

As we begin the new month, we cannot confirm if the early bullish rise will continue for long or it is just a correction phase for the bearish run. The psychological zone is the 28911 zone on the monthly chart which will change the whole swing of the Bitcoin market.

Weekly Chart

Weekly Resistance Levels: 59249, 52100, 45500

Weekly Support Levels:  28910, 32950

The bitcoin market had about a 30.40% jump from the support zone of 32950 when it closed the previous week’s candle. The morning star chart pattern is noticed when you combine the last three candles with the focus that the support zone of 32950 is established. We expect the price of bitcoin to surge towards the resistance zone of 52100 if the bullish momentum is confirmed.

The crypto traders believe that the bearish trend will continue when the price test the resistance zones of 45500. They expect the 45500 zones will likely be a resistance for the long position traders and the price will likely reverse from the area. However, nothing is certain in the crypto market because of the changes in trends and events.

Daily Chart

Daily Resistance 52098, 45500, 69000.

Daily Support 32950, 37500, 36200. 

The daily chart trendline connecting the highs from the ATH of bitcoin to other lower highs on the daily chart has been broken, the close of 04 February 2022 day candle signal the bullish sentiment and this led to the bullish reaction of crypto brokers and other market participants. This action took the price of bitcoin to the high of 45000 resistance level before the zone slowed the bullish surge. At the writing of this report, the price has pulled back to the 44000 zones. 

Technically, we need to see a retest of the BTCUSD pair at the zone of 37500 where the breakout above happened from. If the bullish breakout is false, the bearish trend will close lower than the 37500 zones to take the price lower, but if the bias is bullish, we shall get a rejection around the zone and the market volatility will increase for a bullish trend.

H4 Chart

4 Hour Resistance 45600.

4Hour Support  3600, 41600

The bullish engulfing candle on the 4th February 2022, was the early sign of bullish dominance on the H4 time frame looking at the crypto chart. The BTCUSD pair rose to the high of 45600 making an above 20% gain. The price needs to break out above the 45600 zones for the trend to continue its run. A close below the support zone of 41600 will likely take the price of bitcoin to the support zone of 36000. 

Bullish Scenario:

The bullish scenario is likely to continue if the long position traders of 04 February 2022 can sustain their position and push the price high above the 45000 zones. A close above the zone will attract more bull to open long positions.

Bearish Scenario

On the 21^st January 2022, the close of the bearish candle broke the market structure of the previous support zone. The price is retesting the zone. If the Bears can push back the price to close above the support zone of 32950, we see the bitcoin price drop lower.

Bitcoin BTC News Events 

Russia plans to legalize Crypto Assets.

Reports from the Russian business newspaper (Kommersant) tell how the Russian authorities are processing a draft on the crypto assets and how the new legislation will recognize it as currencies and regulate it like other forms of currencies.

The new regulation will enable the Russian authorities to provide clear guidelines for individuals and businesses that intend to engage in cryptocurrency-related business. Previously, the government was skeptical about digital financial assets before the President announced that the development of the crypto industry will be an advantage to the Russian economy.

When the new law is in place, Banks might be asked to provide exchanges for the crypto to businesses and individuals who will need it. Also, the registration of individuals who are transacting through licensed intermediaries or banks will be required. Any transaction above 500,000 rubles must be declared while undeclared transactions above the margin will be treated as a crime.

Conclusion and Projection

The BTCUSD pair is bullish on the H4 time frame if the momentum is sustained and the price can close above the current resistance zones, the price will continue to trend higher.

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