It was another volatile trading week in the Bitcoin (BTC) market marked by almost equal amounts of losses and gains. According to data from CoinMarketCap, Bitcoin moved between $95,000 – $98,000, forming a strong consolidation zone. However, popular crypto analyst Burak Kesmeci states the critical levels for the premier cryptocurrency lie outside this price range.
Bitcoin Key Levels To Watch – $94,000 Support Vs. $117,000 Resistance
In an X post on February 14, Burak Kesmeci shared an interesting technical analysis on the BTC market highlighting two key zones that could decide the short-term price direction.
One of these critical zones is the 1.6 Gold Ratio Multiplier which currently stands at $117,000. The 1.6 Golden Ratio Multiplier is a valuation tool used to identify vital resistance zones in a bull market. Therefore, Kesmeci postulates that if the Bitcoin Futures market closes above $117,000, spot traders can anticipate the bull rally to rediscover its form leading to an immediate uptrend.
The second important price zone identified by Burak Kesmeci is the 111-day Moving Average (111DMA) which is presently at $94,000. The 111DMA is a commonly used moving price average indicator that often acts as a key dynamic support level during the bull run.
Consequently, a weekly or daily price close below $94,000 in the Futures market will invite a strong bearish pressure on Bitcoin translating into an immediate price dip. Based on Kesmeci’s postulation, Bitcoin will likely soon break out of its current consolidation zone to register any significant price movement.
Bullish factors that may support a price breakout include an increase in ETF inflows and corporate crypto interest, as well as substantial progress in the US’s new pro-crypto agenda. On the other hand, investors should fear variables such as negative macroeconomic developments e.g. a hike in Fed interest rate especially considering the recent rise in US inflation.
BTC Exchange Inflows Hit $1 Billion – Price Dip Incoming?
In other news, analytics site IntoTheBlock reports the Bitcoin market recorded an inflow of over $1.3 billion resulting in a net inflow of $1.04 billion. Generally, massive exchange inflows are interpreted as a bearish signal as investors are likely moving their assets in preparation to sell on the exchange.
At press time, the leading cryptocurrency continues to trade at $97,653 reflecting a 0.50% gain in the past 24 hours. However, its daily trading volume crashed by 12.80% and is presently valued at $32.29 billion. With a market cap of $1.93 trillion, BTC continues to rank as the largest digital asset.
Credit: Source link
