Little genuine relief is on the horizon if the latest data is any guide, says Material Indicators, as Bitcoin meanders around $37,000.
Bitcoin (BTC) received a welcome boost at the Wall Street open on Jan. 31 as fresh research painted a gloomy picture for near-term price action.
Trader “not interested” in longs below $38,500
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD climbing toward $38,000 on Monday, reversing a correction which set in immediately after Sunday’s weekly close.
With stocks giving some relief to bulls, many analysts remained hands-off on Bitcoin while higher levels nearer $40,000 remained unchallenged.
“Bitcoin chopping around and fighting resistance, while the volume remains low overall,” Cointelegraph contributor Michaël van de Poppe summarized after his latest YouTube update.
“As stated, sub $38.5K not that much interested in any long entries, unless higher timeframe bullish divergences play out. $37.5K is a first minimal step.”
Fellow trader Pentoshi added that a suitable buy-in zone lay immediately below current levels.
“I think you can likely bid 33-36k. And scale in And see yearly open on BTC in February. Lose 33k on HTF basis and cut it,” he considered as part of Twitter comments on the day.
At the time of writing, BTC/USD traded at around $37,700, up $1,100 versus earlier lows.
Expect “ranging” to continue for BTC
Other sources were more somber on Bitcoin’s upcoming prospects.
Related:Â Bitcoin price down 20% so far in 2022 after worst January since 2018
Highlighting signs from its Trend Precognition set of on and off-chain indicators, analytics suite Material Indicators revealed that no significant change of tact had occurred versus the start of Bitcoin’s decline in November.
“Zoomed out to a MACRO view of Bitcoin as we approach the monthly close. Trend Precognition shows no signs that BTC has bottomed. Expecting to range as the downtrend continues,” it commented on Twitter.
Such a perspective ties in with those who believe that a lower low is necessary for Bitcoin to put in a convincing floor and begin to tackle resistance.
Previously, fellow monitoring resource Whalemap identified $27,000 as an area of significant support should the current range give way.
#Bitcoin macro levels according to volume profile (the on-chain version)
27k looks to be the closest support in case 34k is lost pic.twitter.com/BgLQ2FZaO2
— whalemap (@whale_map) January 27, 2022
Meanwhile, Cointelegraph has produced a list of potential price triggers for the coming week.
