Bitcoin Price Analysis Feb.1: BTC Is Still Around $3400, a Possible Move Coming-Up

Two more days and Bitcoin is still around the $3400 mark. However, by looking on the 4-hour chart, we could see the negative momentum following the tight range, while BTC is forming a descending channel.

Since our previous analysis, Bitcoin had broken down the 4-hour chart’s 50 days moving average line (marked in purple) and had enough time to confirm this line as a resistance (tested and got rejected).

In the meantime, the 100 days moving average line (marked in white) has just crossed down the 50 days moving average line. This also emphasizes the bearish momentum.

As of writing this, Bitcoin tests the bearish channel’s upper trend-line as resistance.

Looking at the 1-day & 4-hour charts

From the bull side, the next resistance lies around $3420 – $3435, where the two moving average lines lie. Breaking up, with volume, could send Bitcoin to the next resistance area of $3480 – $3500 (along with the 200 days moving average line, marked light green). Above that range, there is the daily chart’s 50 days moving average line, currently around $3650.
From the bear side, support levels lie at $3360, $3300 – $3320 and $3200 before reaching the level of $3120, which is the 2018 low.
Looking on the daily chart’s RSI: together with the descending channel, the daily chart’s RSI is also forming such a bearish channel. The RSI will soon reach prior support around the 35 levels.
Bollinger Bands are very tight, this suggest of a coming up move soon.
Stochastic RSI of the daily chart had crossed over on the oversold area. However, the indicator is still hovering inside the oversold bearish areas. Could be interesting to watch that oscillator closely.
The trading volume is meager. Typically to the past weeks. A weekend is coming up, might be the right time to move the market easily.
BitFinex’s open short positions decreased to 26.1K BTC of open positions.