In the quiet town of CryptoVille, on a day when the frost clung to the windows like a stubborn relative, Bitcoin (BTC) decided it was time for a little dance. As the Wall Street gates creaked open, BTC price volatility waltzed in like an uninvited guest at a wedding.
While the rest of the market was busy deciding whether to laugh or cry, BTC/USD sauntered past $97,000, a move as surprising as finding a diamond in your morning bowl of porridge.
It seems the coin gained as much as 6.7%, which is more than most of us gain in a year of hard labor. This, of course, was after it took a little nap at $91,530, just after the weekly open.
Meanwhile, the US decided to play a game of ‘Who Can Irritate Whom More’ by placing tariffs on Canada and Mexico, with President Donald Trump threatening to expand them to the EU. Because, why not add a little more chaos to the mix?
Altcoins, feeling like the unpopular kids at school, bore the brunt of the risk-asset sell-off. Many of the top twenty cryptocurrencies by market cap decided to take a dive, shedding 20% or more. It was like a bad day at the salon – everyone was getting a trim, whether they wanted it or not.
“I think for now, as long as the range lows and yearly open BTC continues to look good compared to the rest of the market,” wrote popular trader Johnny, probably while sipping on a cup of tea and chuckling to himself.
Rekt Capital, a popular trader and analyst, noted that due to the BTC price downside, a new “gap” in CME Group’s Bitcoin futures market had opened above $98,000. Because, you know, what’s a market without a few gaps to keep things interesting?
As CryptoMoon reported, these “gaps” tend to act like a magnet for prices once the market is open again, often being “filled” within days or even hours. It’s like magic, but with more charts and less fun.
“Volatile retest is in progress,” he continued, probably while adjusting his glasses and stroking his beard thoughtfully.
“Bitcoin has the entire month of February to Monthly Close above ~$96600 to confirm the retest as successful. More, BTC is forming its 3rd consecutive Higher Low in the downside wicks against Dec & Jan Monthly support.”
Bitcoin’s relief bounce was not mimicked by US stock markets, which decided to throw a little tantrum of their own. The S&P 500 and Nasdaq Composite Index were down 1.75% and 2.25%, respectively, at the time of writing. Because, why should crypto have all the fun?
“Acting as a risk proxy before U.S. markets opened, crypto saw nearly $2 billion in liquidations, with ETH hit harder than BTC,” explained trading firm QCP Capital, probably while sipping on a cocktail and watching the world burn.
“This decorrelation reinforces the view that today’s risk-off move is driven by cross-asset portfolio rebalancing rather than a single-asset event. Expect continued volatility as Trump prepares to negotiate with Canada and Mexico tonight, while claiming tariffs on the EU are ‘definitely happening.’”
A glimmer of hope, as faint as the smile on a tax auditor’s face, came from Relative Strength Index behavior on 4-hour timeframes. 4-hour RSI on BTC/USD dipped below the 30 “oversold” level on the day, coinciding with the local lows before a sustained bounce. It was like a tiny ray of sunshine in an otherwise gloomy day.
“For the 5th time since August 2024, Bitcoin’s 4-hour RSI is
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2025-02-03 18:41