Bitcoin (BTC) Price Analysis – February 6

  • The BTC price depreciates and approaches the $3,400 price level.
  • The bearish trend is ongoing, and there is the likelihood of the price falling to the low of $3,000.

Bitcoin, BTCUSD, CryptoCompare chartBitcoin Chart By Trading View

BTCUSD Medium-term Trend: Bearish

  • Resistance levels: $7,000, $7,200, $7,400
  • Support levels: $3,400, $3,200, $3,000

The BTC price is still in a downward trend as the crypto depreciates further. A bearish trend line is used to initiate short trades. Yesterday, the bulls failed to break the trend line, an indication that the bearish trend is ongoing.

On February 5, traders were to initiate short trades at the market price. A stop loss should be placed at a price above the trend line. On January 26, if a trader had placed a short trade when the bulls failed to break the trend line, he would have made a partial profit. Today, the BTC price is trading at $3,450.20 as at the time of writing.

As the bearish trend is ongoing there is the likelihood of price falling to the low of $3,000. Meanwhile, the stochastic band is below 40% range which indicates that the crypto is in a bearish momentum and a sell signal.

BTC/USD Short-term Trend: Bearish

Bitcoin, BTCUSD, CryptoCompare chartBitcoin Chart By Trading View

On the 1-hour chart, the price of Bitcoin is in a bearish trend zone. On February 5, the bulls broke the 12-day EMA, the 26-day EMA and the price reached the high of $3,517.50 but were resisted. The crypto’s price fell to the support at the 12-day EMA to commence another bullish movement. The bulls were resisted the second time at the price of $3,521 but the bears brought price to the low of $3,445.9.

The BTC price is below the EMAs and it is likely to fall.The stochastic band has reached the oversold region and below the 20% range which indicates that the price is in a strong bearish momentum and a sell signal.

 

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