Bitcoin (BTC) had reached a low of 39.5% back in January and has been gradually growing since then. This suggested that capital was flowing toward Bitcoin (BTC) as opposed to other altcoins in the market.
Furthermore, Tether (USDT) has plummeted from 4.87% in the week before to 4.28% at the time of writing, indicating that market players were starting to invest in cryptocurrencies after sitting on the sidelines with Tether (USDT). According to a recent analysis on the biggest cryptocurrency, a phase of increased volatility is on the horizon for Bitcoin (BTC).
When the $59.1k level was breached and challenged as resistance, the decline of Bitcoin (BTC) commenced, and it seemed to endure until early February. Bitcoin (BTC), on the other hand, soared to a new high of $45.8k at the beginning of February.
Importantly, this level was greater than the Bitcoin (BTC) downward trend’s latest lower high, which was $44.6k. Simultaneously, the price dropped to new lows, which in turn signified that the decline had at the very minimum come to a halt.
The $45.8k level shows a strong supply position, and sellers are predicted to be dominant up to $52k. As a result, while a lengthier negative bias has decreased significantly, the bulls were also not in control.
For Bitcoin (BTC), the signs revealed a similar scenario. Following almost a month of struggling, the RSI had risen over the neutral 50 levels. In addition, the MACD created a bullish confluence and rose over zero. Each of these indicators suggested that the bulls’ stronghold on the market had diminished, and that bullish momentum was not as significant.
The OBV went even deeper, emphasizing how, notwithstanding a disruption in market structure, the demand of buyers was merely insufficient. Since November, the OBV has been on a steady decline, however, it has risen slightly since January 2022. This move, however, was unlikely to prompt a new upward rise.
Buyers and sellers competed intensely through every important horizontal level as the Bitcoin (BTC) price seemed to be recovering. The $44k-$45k range was a significant resistance zone, with $48k also acting as a barrier. The $38k level, as well as the $35k-$36.4k range, could provide assistance.