Data from Cointelegraph Markets Pro and TradingView showed BTC/USD tracking sideways overnight, after it fended off volatility at the first opening on Wall Street this week.
While the pair failed to flip $23,000 support, the pair nonetheless witnessed a potentially important event on February 6 in the form of a “golden cross” on the daily chart.
This indicates that the 50-period moving average has risen above the 200-period moving average. The last time this happened on daily timeframes was in September 2021 – two months before Bitcoin’s most recent all-time high.
BTC/USD 1-day candlestick chart (Bitstamp) with 50, 200MA. Source: TradingView
Some crypto analysts have watched the crossover with keen interest, with Venturefounder, a contributor to on-chain data platform CryptoQuant, arguing that $25,000 could resurface as a result.
“Bitcoin goldencross just happened!” He summed it up in a reaction on Twitter.
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“This potential correction could see BTC retest $20k (200 DMA and key support), then on the upside, test $25k next. Get support at $25k which is the nail in the coffin for bears.”
Annotated BTC/USD chart. Source: Venturefounder / Twitter
The picture remained complicated on the day thanks to an upcoming “counter-cross” on the weekly timeframes, as the 50-period EMA remained on course to drop below the 200-period level – a phenomenon known as the “death cross” due to its damaging reversal effect on BTC price action.
1 week BTC/USD candlestick chart (Bitstamp) with 50, 200MA. Source: TradingView
As for the on-chain monitoring resource Material Indices, it remained uncertain whether a golden cross alone could push BTC/USD higher.
“Whether it was enough to get a legit test of the $25k range,” she wrote in part of a comment on the Binance order book.
The accompanying chart showed significant resistance in the form of a stacked liquidity demand at $23,500 – the first major hurdle that bulls must overcome in the event of a move higher.
BTC/USD order book data (Binance). Source: Material Indicators / Twitter
Powell’s “Single Fundamental Factor” Speech for Macroeconomic Week
Another factor on the radar on February 7th came from comments from the Federal Reserve Bank of the United States.
Related: Is BTC Price About to Retest $20K? 5 things to know in bitcoin this week
Before the release of macroeconomic data next week, several Fed officials were scheduled to speak, and Chairman Jerome Powell’s words are expected to be the most significant regarding market-moving potential.
“Nothing special this week, the only major factor to watch is Powell tomorrow afternoon. Maybe another campaign for a correction and then the party should keep going higher,” stated part of the Twitter analysis by Michael Van de Poppe, contributor to Cointelegraph, on February 6.
Van de Poppe added that “buying the dip” might be an appropriate option on altcoins for the time being, as material indices suggested that the case for bitcoin whales was indeed.
The views, ideas and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
