Bitcoin (BTC) stayed near $23,000 on Feb. 7 as a key chart phenomenon arriving for the first time in 18 months.
The battle of the Bitcoin crosses begins
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD tracking sideways overnight, having avoided volatility at the first Wall Street open of the week.
While it failed to flip $23,000 to support, the pair saw a potentially significant event on February 6 in the form of a “golden cross” on the daily chart.
This refers to the rise of the 50-period moving average that crosses over the 200-period moving average. The last time this occurred in daily time frames was in September 2021, two months before Bitcoin’s last all-time high.
Some crypto analysts have been closely watching the cross, with Venturefounder, a contributor to on-chain data platform CryptoQuant, arguing that $25,000 could reappear as a result.
“Bitcoin goldencross just happened!” he summarized in a Twitter reaction.
“This potential correction could see BTC retest $20k (200DMA and key support), then in the bullish case test $25k next. Make a $25k endorsement and it will be a nail in the coffin for the bears.”
The outlook remained challenging on the day thanks to an upcoming “crossover” on weekly time frames, where the 50-period moving average was still on track to fall below the 200-period moving average, a phenomenon known as the “death crossover.” conversely detrimental impact on BTC price action.
For on-chain monitoring resource material indicators, it remained uncertain whether the golden cross alone could propel BTC/USD higher.
“Whether it’s enough to get legitimate proof of the $25k range remains to be seen,” he said. wrote in part of the commentary on the Binance order book.
An accompanying chart showed major resistance in the form of pent-up demand liquidity at $23,500, the first major hurdle for bulls to clear in the event of a move higher.
Powell’s “single key factor” speech of the macro week
Meanwhile, another factor on the radar for February 7th came in the form of comments from the US Federal Reserve.
Related: Is BTC Price About to Retest $20K? 5 things to know about Bitcoin this week
Ahead of next week’s macroeconomic data prints, several Fed officials were set to speak, with Chairman Jerome Powell’s words expected to be the most significant in terms of potential market movement.
“Nothing special this week, only key factor to watch is Powell tomorrow afternoon. Maybe one more sweep for correction and then party should continue to rise,” part of Cointelegraph contributor Michaël van de Poppe’s Twitter analysis . fixed on February 6.
Van de Poppe added that “buying the dip” might be an appropriate option on altcoins in the meantime, as Material Indicators noted, was already the case with Bitcoin whales.
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