The market ruptured, Bitcoin fell to $ 3,800

After an impressive performance over the past two weeks, the Bitcoin (BTC) price appears to be taking a break on February 7 when trading in the range of $ 9,730 to $ 9,800. The weekly peak of $ 9,910 appears to be facing resistance and the sideway price is below this level throughout the day.

Overview of the cryptocurrency market. Source: Coin360
Overview of the cryptocurrency market. Source: Coin360

Up to now, the $ 9,730 level has been acting as a support and a pullback below this level could cause the BTC price to fall slightly below the moving average (MA) of the Bollinger band at $ 9,450, and if further fall below. At this level, the 6-hour chart shows the possibility of price falling to the MA-50 line at $ 9,350.

Daily BTC / USD chart. Source: TradingView
Daily BTC / USD chart. Source: TradingView

If the world's leading cryptocurrency is entering a period of consolidation, it is perfectly normal for the price to retest the lower support at $ 9,472, as was the case in the weeks before Bitcoin rose from $ 7,300. USD follows the step and stairway model.

BTC / USD 6-hour chart. Source: TradingView
BTC / USD 6-hour chart. Source: TradingView

The VPVR indicator also shows a high volume button at the support of $ 9,472, thus predicting that the price could bounce if the bulls return to this area. The same move can also occur for the 50-day MA at $ 9,350.

Daily BTC / USD chart. Source: TradingView
Daily BTC / USD chart. Source: TradingView

On February 7, Michaël van de Poppe – regular analyst of CoinTelegraph, took tweet Bitcoin price seems to have reached a temporary peak and posted the chart above, he said:

“However, I think it will peak here shortly and only show sideways moves. Similarly, the best would be $ 8,750- $ 9,000 when returning to Long. Not sure we will get it … break out here and target $ 10,400-10,900. “

At the time of writing, the relative strength index (RSI) is bouncing back from 70 (overbought zone) on the daily time frame, a level that saw Bitcoin price pullback when reached on Jan. 30, January 27, January 18 and January 14.

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Although the shorter time frame is currently suggesting that the Bitcoin price is consolidating, the weekly time frame is still extremely bullish.

Weekly BTC / USD chart. Source: TradingView
Weekly BTC / USD chart. Source: TradingView

Traders should note that the Moving Average Convergence Divergence (MACD) is still in the middle of a bull cross – a fairly rare event that marks the beginning of a strong uptrend.

Swing Trading and Hodler will interpret this as a buy and hold signal, and will expect great excitement in the coming months.

The total market capitalization of cryptocurrencies is at $ 278.1 billion with Bitcoin's dominance rate reaching 63.8%. The price action of altcoins is relatively quiet, with a handful of the top 20 altcoins making small profits and losses.

Some of the more prominent coins, Bitcoin SV (BSV), have increased by 14.21%, Dash (DASH) has increased by 6.29% and Dogecoin (DOGE) has increased by 7.56%.

Readers can update BTC rates and more than 2,000+ cryptocurrencies in real time here.

Disclaimer: This article is an analysis by cryptocurrency analyst Horus Hughes – a frequent contributor to CoinTelegraph. Readers should only consult, not consider this as an investment advice, especially from Toiyeubitcoin, we will not be responsible for your investment.

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According to CoinTelegraph
Translated by ToiYeuBitcoin

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