BITCOIN – On January 24th, 2022, BTC found support at a low of around $33,000. The price moved up considerably over the next two and a half weeks after that, to a high on February 10th, 2022, at around $45,800. That was an almost 40% move in just over two weeks.
There is major resistance between the $44,000 and $46,000 level, and the BTC bulls have spent a week in that zone, trying to break through. Unfortunately, the bears stepped in yesterday, forcing the price to drop. Currently, we are finding support at around $40,900. Interestingly though, yesterday we managed to close the Chicago Mercantile Exchange (CME) gap, between $40,760 and $41,400, from February 7th, 2022. We are also currently at the 0.382 Fibonacci retracement level, between the low of January, 24th 2022 and the high of February 10th, 2022.
We do see a temporary “relief” move to the upside, possibly to the next resistance at $41,300 or even $41,850. If the price has to drop further in the next couple of days, there is support between $38,000 and $39,400. If that does not hold, the next support is at around $35,500.
BTC Dominance (BTC.D)
What is interesting with this chart, even though bitcoin started to drop on February 17th, BTC.D has broken the daily support line to the downside, support which goes all the way back to January, 16th 2022. This means that even though BTC was dropping, the rest of the alts did not drop at the same pace. This is very bullish for the altcoins in the next couple of weeks.
USDT Dominance (USDT.D)
The USDT Dominance has been dropping since 24th January, where money has flowed out of the stablecoins into the trading market. The USDT.D has come down to the daily support line coming from November 2021, and it has been on that support for the last 10 days. Unfortunately, we were not able to break to the downside, but hopefully we will see a break of that support line in the next couple of weeks, which will be very bullish for the overall market.