Daily Trading Analysis: A Detailed Breakdown of Market Momentum BTC - 5th Feb 2025
n today’s trading analysis, we’ll revisit yesterday’s insights and assess the price action of Bitcoin (BTC) leading up to and during the 5th of February 2025. As previously discussed, Bitcoin’s price action has been teetering between critical levels, creating both challenges and opportunities for traders.
Short-Term (30-Minute Chart) Analysis
Key Insights from Yesterday
Price had been oscillating between $98,000 as resistance and $97,200 as support. In the early hours before market open, Bitcoin broke above the $98,000 price range and retested this level. Typically, such a scenario presents a solid entry point; however, the absence of an engulfing candle during the retest raised caution flags for traders.
This breakout above $98,000 coincided with a break above the 50 EMA. Despite this, the first 30-minute candle of the New York session saw Bitcoin attempt to breach the 200 EMA, only to face rejection. This rejection initiated a downtrend that persisted throughout the session, culminating in a close at $96,800.
Recent Developments
In the after-hours trading session, Bitcoin’s price respected the previously highlighted descending trendline as a critical area of support. Following this, the price reversed, initiating an uptrend. The breakout has successfully overcome multiple resistance levels, including both the 50 EMA and 200 EMA, indicating a shift in momentum.
Additionally, the recent upward move is supported by increased trading volume surpassing the 20 MA, suggesting the strength and validity of this breakout. Traders should monitor how price behaves near $98,438 and $100,483—key resistance levels that may determine further upside potential.
Medium-Term (Daily Chart) Analysis
Yesterday’s Performance
On the daily timeframe, Bitcoin remained in a downtrend, closing the previous session well below the 50 EMA. The price struggled to overcome bearish pressure, testing the descending trendline as a key support level.
Current Outlook
Today, Bitcoin has shown resilience, bouncing off the descending trendline—an area of confluence that aligns with a significant support zone in the $96,000 range. This bounce has been further reinforced by increasing buying interest, evidenced by green volume bars on the daily chart.
While price remains in a broader downtrend, a successful close above the 50 EMA ($98,741) could signal a medium-term reversal. However, failure to reclaim this level may result in price consolidation or a revisit of the lower support zone around $92,000.
RSI Divergence
The RSI on the daily chart is showing bullish divergence, where the RSI has made higher lows while the price has made lower lows. This is an early indication of potential trend reversal and supports the bullish case for a move higher in the coming sessions.
Summary and Outlook
Short-Term Bias: Bitcoin has initiated a strong uptrend on the 30-minute chart, reclaiming the 50 EMA and 200 EMA. Traders should monitor price action near $98,438 and $100,483 for potential resistance.
Medium-Term Bias: The daily chart remains in a downtrend but shows signs of recovery. A close above $98,741 (50 EMA) will be critical in confirming a medium-term bullish reversal.
Key Levels to Watch:
Support: $97,254, $96,069, and $92,000.
Resistance: $98,438, $100,483, and $108,000.
Volume Analysis: The recent upward move is accompanied by strong volume exceeding the 20 MA, signaling confidence in the bullish push.
RSI Signals: Short-term RSI suggests potential overbought conditions, while daily RSI divergence supports a bullish outlook.
Final Thoughts
Bitcoin’s price action has been dynamic, creating opportunities for both short-term and medium-term traders. The interplay between key EMAs, support zones, and RSI signals highlights the importance of a balanced trading approach. As always, traders should remain vigilant, adapting to evolving market conditions while focusing on risk management strategies.
