Weekly BTC-USD(7th February)

BTC has been showing positive strength since January 24th, bulls have been trying to push the market up for the last two weeks. The combined crypto Mcap has increased by more than 15% in these last two weeks. BTC formed a strong positive candle on the weekly TF after the last week’s Hammer candlestick pattern, which was depicting that we can expect a short term rebound to the higher side.

As per the chart patterns, BTC has given a breakout from its descending channel formation and is sustaining above the trendline resistance which is placed around $41,000, this slightly suggests that markets are now witnessing fresh buying strength and it can sustain in the coming days also.

In the last two weeks, more than $400 Mn worth of short positions got liquidated which pushes the market even further higher. Weekly MACD is showing a positive signal as it is close to giving a bullish crossover.

Also, on the Monthly TF, BTC has completed the 3 Black Crows formation, which is a bearish pattern consisting of 3 back to back red candles. In most cases, a short term pullback can be expected after the completion of this formation.

Key levels to look out for in the coming weeks:-

Support 1- $40,500
Support 2- $38,000

Resistance 1- $43,500
Resistance 2- $46,000


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