Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD has been holding a narrow range in place since the Wall Street open on February 3.
Macroeconomic data from the US provided modest volatility but the overall trend was unchanged as traders bided their time off the weekend.
Opinions on the long-term outlook were mixed, with some asserting that there is little reason to be confident that Bitcoin will continue to rally.
Popular Crypto trader Tony summed up part of his tweet the other day: “Seeing $50,000 calls already on Bitcoin and we still have to complete a higher and higher lower market structure change.”
The most bullish trader was Credible Crypto, who doubled down on a theory comparing current BTC price action to late 2020, after Bitcoin surpassed its all-time high in 2017.
“Price action has developed beautifully from our lows, mimicking the bottom formation that preceded our recent 10k-60k+ rally. The current consolidation (circled in green) also looks identical to the PA of this impulse,” he wrote in an update to the corresponding Twitter thread. .
“BTC may continue to pump while most people are waiting for a pullback…”
BTC/USD comparison charts. Source: Credible Crypto / Twitter
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Others were concerned about a turnaround in the US dollar’s fortunes, which could affect risky assets across the board if it continues.
The US Dollar Index (DXY) was “sounding alarm bells” for popular trader Bluntz, who revealed a slide in stablecoins.
After such a long, deep sell-off, do we think DXY is really over to the upside? I don’t. Dollar Retreats From Twenty-Year Highs In Q3 2022 Macro Investor David Brady Comments On A Lotta Pullback about the pressure so far.
US Dollar Index (DXY) chart in the form of a one-day candle. Source: TradingView
The RSI is preparing for a “continuation of the upward trend”
Focusing on the monthly timeframes, meanwhile, trader and analyst Rekt Capital looked at a possible signal of a decline in Bitcoin before continuing higher.
Related: Bitcoin Prepares for New “Big High” as RSI Copy 2018 Bear Market Recovery
This came in the form of the Relative Strength Index (RSI), which rebounded in January from its all-time lows to regain a key support level.
While acknowledging that historically, bitcoin markets have “not really seen double bottoms” in the RSI, he argued that there is still a chance of a higher drop after that.
“Just now reaffirming these levels and keeping them consistent and stable – that’s what we really want to see for continued upside,” he concluded in a YouTube video released on February 3.
Bitcoin Relative Strength Index (RSI) chart (screenshot). Source: Rekt Capital / YouTube
Similarly, a Twitter poll from Rekt Capital gave a narrow consensus that a BTC/USD pullback should happen.
