Sentiment across the cryptocurrency ecosystem turned to cautious optimism on Feb. 7 as Bitcoin (BTC) bulls managed to push their price back above the market with the help of several positive developments, including the announcement by “Big Four” verifier KPMG Bringing support of $44,000 added BTC and Ether (ETH) to its corporate treasury.
Data from Cointelegraph Markets Pro and TradingView shows that after hovering around $42,500 in the early hours of February 7, a midday buying spree propelled the price of BTC to a high of $44,500 as short-term traders sought to liquidate their positions close.
Here’s a look at what various analysts are saying about Bitcoin’s movement on February 7th and what could happen next as traders try to capitalize on the sudden surge in price and momentum.
“Good place to close long positions”
The sudden uptrend in BTC has prompted a series of bullish announcements from crypto holders, while more seasoned traders, including pseudonymous Twitter user Pentoshi, are taking the opportunity to lock in some profits and rebuild themselves for what’s to come position.
pentoshi He said:
“I’m taking the final highs now. Looking for a last raise but $44k to $46,300. In my opinion, it’s a good place to exit and reevaluate long positions.”
Traders remain bearish on BTC
Bitcoin analyst and Twitter user Allen Au provided an insight into how this recent BTC price action is being perceived by active traders general The chart below shows how futures markets were affected by price action on February 7th.
As the chart shows, $71 million worth of bitcoin shorts were liquidated to accompany a decline in open interest, in what Au called a “short squeeze” that “could continue to drive a price hike.” He further explained:
“Funding rates for perpetual futures are negative even as BTC breaks above $44,000. Traders remain bearish on BTC.”
Au highlighted the next major resistance levels for Bitcon at $44,500, $46,500 and $47,500.
$45,000 signals a possible trend reversal
Crypto analyst and pseudonymous Twitter user Sheldon the Sniper provided insight into Bitcoin’s long-term price action, who general The chart below shows BTC returning to the uptrend it has been in since late 2020.
“$45,000 will give us the first major high and will be a great indication of a possible trend reversal.”
Crypto analyst and pseudonymous Twitter user TechDev offered a slightly different perspective on BTC’s long-term price action, who general the chart below, indicating that “Bitcoin has been correcting/consolidating for almost a year.”
“Probably on a walking floor that could turn into a walking triangle. The next boost will be big.”
The global market cap of the cryptocurrency is now $2.024 trillion and the bitcoin dominance index is 41.5.
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