Bitcoin (BTC) hovered around $23,500 on February 4 as bulls refused to give up support in after-hours trading.
Bitcoin price conjures memories of 2020
Data from Cointelegraph Markets Pro and TradingView show BTC/USD holding a narrow range since the February 3 Wall Street open.
The release of macroeconomic data from the United States provided little volatility but no change in the overall trend as traders bided their time heading into the weekend.
Opinions on the long-term outlook are mixed, but some still see no reason to believe that Bitcoin’s rally will continue.
“Seeing that $50,000 is already in Bitcoin and we haven’t finished changing the structure of the market higher and lower,” popular Crypto trader Tony summarized in the tweet section of the day.
Even more optimistic is fellow trader Credible Crypto, who doubled down on a theory that compares BTC’s current price action to the end of 2020, just after Bitcoin has passed its 2017 high.
“The price action has developed well, mimicking the bottom formation that preceded the last impulse from 10k-60k+. The current consolidation (circled in green) also looks similar to the PA of the impulse,” he said write in an update to the appropriate Twitter thread.
“BTC can keep pumping while most wait for a pullback…”
Others are worried about the turnaround in the fortunes of the US dollar, this has the potential to impact risk assets on the board if they continue.
The US dollar index (DXY) “rang alarm bells” for the popular trader Bluntz, who revealed a segue into stablecoins.
“After a long and deep selloff, do we think the DXY is over? I don’t. Lotta shorts to squeeze yet,” macro investor David Brady along about the dollar’s decline from a twenty-year high in Q3 2022.
RSI ready to “keep going”
Focusing on the monthly timeframe, meanwhile, Rekt Capital traders and analysts see potential signs for Bitcoin to drop before continuing higher.
Related: Bitcoin due to new ‘big rally’ is a copy of RSI 2018 bear market recovery
This comes in the form of the relative strength index (RSI), which in January bounced from an all-time low to recover key support levels.
While acknowledging that historically, the Bitcoin market “has not really seen the double bottom” in the RSI, supporting that there is still a chance that more or less can come next.
“Now it’s just confirming and keeping the level consistent and stable – that’s what we really want to see for bullish continuation,” he concluded in a YouTube video released on February 3.
A Twitter survey from Rekt Capital also gave a narrow consensus that it should be down for BTC/USD.
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