With a long and volatile month of January coming to an end, Bitcoin brings an indecisive pause to the four months of bull run. The Spot ETFs failing to bring the anticipated bull run, the BTC price trend gives a sharp move on either side of the Y-axis.
Sustaining the ups and downs of January, the monthly candle comes out as a Doji with a positive body. Avoiding a bearish month due to the sell-off around Grayscale’s Bitcoin trust rising outflows, the buyers delay any larger correction in the market.
However, will the Doji candle lead to a bearish reversal in February, or will the bullish performance of February continue in 2024? Read our complete Bitcoin price prediction to find out if Bitcoin will perform this month.
Bitcoin’s Volatile Week Takes A Bearish Turn
With three bearish candles consecutively, the BTC price retests the $42K breakout and the 50-day EMA. However, the increasing volumes supporting the bearish candles warn of a breakdown rally under the crucial $42K mark.
Source: Tradingview
Further, bitcoin sustains above the 23.80 Fibonacci level and tests the bullish dominance over a confluence of multiple support levels. Hence, sideline traders can find the ongoing brawl as a pivotal point that may decide the trend in February.
Source: Tradingview
Despite the fall, around 81.27% of addresses of Bitcoin holders are profitable at the current market price. Meanwhile, the recent jump now puts ~10% of addresses waiting to be profitable as they stay out of the money.
The dramatic 40% drop in Bitcoin open interest on the CME, amounting to about 30,000 Bitcoin, indicates investors are pulling back, possibly in favor of cheaper alternatives. This shift suggests a broader reevaluation of Bitcoin’s role in investment portfolios, reflecting a cautious approach amid market volatility.
Will The BTC Price Sustain Above $42K?
With a potential inverted head and shoulder in the weekly chart, the BTC price teases a short correction phase to complete the right shoulder.
Source: Tradingview
With the ongoing sideways trend below the neckline at $46K, a weekly closing price above the range will result in a breakout run. In such a case, the BTC price can challenge the previous peak of $69K and result in a pre-halving run to set the stage for the bull market post-halving.
On the downside, bitcoin can retest the $38,475 level.
