Bitcoin (BTC) lingered near $23,000 on February 7 as a key chart phenomenon hit for the first time in 18 months.
The Bitcoin crusade begins
Data from Cointelegraph Markets Pro and TradingView show BTC/USD tracking sideways overnight, having avoided volatility in Wall Street’s first week open.
While failing to flip $23,000 to support, the pair still sees a potentially significant event on February 6 in the form of a “golden cross” on the daily chart.
This represents the rise of the 50-period moving average over the 200-period moving average. The last time that happened on a daily time frame was in September 2021 — two months before Bitcoin’s most recent high.
Some crypto analysts have been keenly watching the cross, with Venturefounder, a contributor to on-chain data platform CryptoQuant, arguing that $25,000 could reappear as a result.
“Bitcoin gold cross just happened!” they summarized in a Twitter reaction.
“This potential correction could see BTC retest $20k (200DMA and key support), then in a bullish case, test $25k next. Create $25k support and nail the coffin for bears.”
The picture remains complicated on the day due to the upcoming “countercross” in the weekly period, where the 50-period moving average remains below the 200 period – a phenomenon known as the “death cross” due to its disadvantage. impact on BTC price action.
As for the on-chain monitoring resource Material Indicator, it remains uncertain whether the golden cross can only push BTC/USD higher.
“Whether that’s enough to get a valid test out of the $25k range remains to be seen,” he said. write in the comments section of the Binance order book.
The accompanying chart shows the main resistance in the form of asking for liquidity compared at $23,500 – the first major obstacle for the bulls to overcome in the event of a move higher.
Powell speech “only key factor” macro week
Another factor on the radar for February 7 comes from the comments of the Federal Reserve of the United States.
Related: Will BTC price retest $20K? 5 things to know in Bitcoin this week
Ahead of next week’s macroeconomic data prints, some Fed officials have been set to speak, with the words of Chairman Jerome Powell expected to be the most significant about the potential of moving the market.
“Nothing special this week, the only factor to watch is Powell tomorrow afternoon. Maybe one more correction, then the party should move on,” part of the Twitter analysis by Cointelegraph contributor Michaël van de Poppe stated on February 6.
Van de Poppe added that “dip buying” could be a suitable option for altcoins in the meantime, as the Material Indicator notes has happened with Bitcoin whales.
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