Analysis

Bitcoin Technical Analysis February 3rd

Bitcoin (BTC) plummeted on Feb. 2 after being rejected by a descending resistance line. Although it has recovered from the short-term support, the price action suggests that the price is likely to drop further in the short-term before reversing.

Day view

Bitcoin has been moving along a descending resistance line since hitting an all-time high of $69,000 on Nov. 10 the next day. While this move adds to the importance of this line, it is worth noting that resistance levels are weakening each time they are touched, so an eventual break above it would be the most likely scenario.

If there is a breakout, the first area of ​​resistance will be found at $40,800. This target is a horizontal zone that previously acted as a support. Above that, the next resistance will be found at $46,700, the 0.382 Fibonacci retracement resistance.

BTC/USDT daily chart | Source: TradingView

Brief incident

The two-hour chart shows two main developments.

First, Bitcoin deviated above the Jan. 26 high (red line) before falling back below it. This is a bearish trend that is usually followed by a move down.

Second, it broke below an ascending support line that has been forming since January 27th. This further supports the possibility of further near-term declines.

BTC/USDT 2 hour chart | Source: TradingView

The bulls have started to jump in at the $36.630 minor support created by the 0.382 Fib retracement support. The key horizontal support comes in at $35.925 created by the 0.5 Fib retracement level.

BTC/USDT 2 hour chart | Source: TradingView

Count waves

The most likely number of long-term waves indicates that a bottom has been reached. As for the short-term wave count, it is possible that BTC is about to complete a shallow ABC correction.

With partial waves A and C (black) in a 1:1 ratio, Bitcoin will reach a low of $35,871, coinciding with the support area outlined above.

BTC/USDT 2 hour chart | Source: TradingView

Although Bitcoin could technically form a first crossover wave, the strong pullback on Feb. 2 has turned that possibility less positive.

BTC/USDT 2 hour chart | Source: TradingView

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Best New Meme Coins to Join for 2025: BTFD Coin Leads, Popcat Keeps It Purr-fect, and Non-Playable Coin Hits Gamers Hard

Discover the Best New Meme Coins to Join for 2025. BTFD Coin's price rollback offers…

1 hour ago

Solana memecoins crash while DTX Exchange hits 100,000 TPS on layer-1 blockchain

Discover how DTX Exchange's historic achievement of 100,000 transactions per second on a layer-1 blockchain…

2 hours ago

Strategic Bitcoin Reserve Expected to Cut 35% of US National Debt by 2049

VanEck suggests the U.S. could reduce its national debt by 35% by 2050 through a…

2 hours ago

The New Lead of Presidential Crypto Council Appointed by Trump Is Bo Hines

President-elect Donald Trump named Bo Hines as the executive director of the presidential crypto council.

2 hours ago

Best New Meme Coins with 1000X Potential: BTFD Coin’s Hot BIG50 Discount As Baby Doge Coin, Dogs Takes Gaming to the Next Level

Explore the best new meme coins with 1000X potential. Learn how BTFD Coin leads with…

3 hours ago

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

5 hours ago

This website uses cookies.