Daily Trading Analysis: A Detailed Breakdown of Market Momentum BTC 7th FEB 2025
In today’s analysis, we’ll explore Bitcoin’s market movement with a focus on the interplay between the 30-minute and daily charts. Bitcoin’s price action on February 7th, 2025, provided a clear example of a downtrend continuation, marked by significant rejections at resistance levels and support retests. Let’s dive into the technical details.
30-Minute Chart Analysis
The 30-minute chart revealed a pivotal support level in confluence with the daily descending trendline. This trendline, previously a strong resistance during a bearish trend, has now flipped to act as a significant area of support on higher timeframes. Price action reflected this dynamic, with Bitcoin testing and holding the $96,000 support zone multiple times throughout the day.
Key Observations:
Support and Resistance Dynamics:
The $96,000 level, derived from the daily chart, acted as a major support zone. However, price remained in a clear downtrend, forming successive lower lows and lower highs.
Attempts to break above $100,000 during the pre-market hours were swiftly rejected, signaling a lack of bullish strength.
Intraday Bullish Attempt:
Price initially showed bullish signs by forming a higher low and breaking into a higher high, sparking optimism about a potential trend reversal.
However, this upward momentum was short-lived, as the New York session opened with sharp selling pressure. This resulted in a steep decline, taking Bitcoin from its intraday high of $100,000 to close the day near $95,900.
EMA Alignment:
The EMA-50 and EMA-200 on the 30-minute chart remained aligned bearishly, with price trading below both, confirming the short-term downtrend.
Daily Chart Analysis
The daily chart paints a similar bearish picture, with Bitcoin breaking and closing below key technical levels. The descending trendline, which previously acted as support, is now on the verge of being invalidated as price continues to test lower levels.
Key Observations:
Trendline & Key Level Interaction:
Bitcoin’s price failed to sustain above the $100,000 psychological resistance, evidenced by three rejection wicks at this level.
The $96,000 zone has emerged as a critical area of interest, coinciding with the break below the descending trendline and the 50 EMA.
EMA Breakdown:
Price decisively broke below the 50 EMA, signaling a shift in momentum. The break confirms that bearish sentiment is dominating.
Downtrend Continuation:
Lower highs and lower lows have continued to form, reaffirming the ongoing downtrend.
The rejection off $100,000 during the pre-market session aligns with the larger trend, as price continues to struggle with bearish resistance zones.
Volume and RSI Insights:
Volume:
A notable increase in sell-side volume during the decline highlights strong bearish pressure.
RSI:
The RSI hovers near oversold conditions but has yet to indicate a meaningful reversal signal.
Summary and Key Levels to Watch
Short-Term (30-Minute Chart):
Support: $96,000 (key daily level), $94,500, $93,800.
Resistance: $97,250, $98,000, $100,000.
A break below $96,000 could open the door for further downside, targeting $94,000 and $93,800. Conversely, a reclaim of $98,000 would signal a potential recovery.
Mid to Long-Term (Daily Chart):
Bitcoin remains in a bearish structure, with the daily close below $96,000 potentially signaling continuation to $90,000.
Bulls need to reclaim $100,000 decisively to invalidate the bearish outlook and set up a potential rally to $101,000 or higher.
Conclusion
Bitcoin’s price action on February 7th, 2025, highlighted the importance of key technical levels and the interplay between intraday and higher timeframes. While brief bullish attempts provided hope, the overall structure remains bearish, with sellers firmly in control. Traders should keep a close eye on the $96,000 support level and watch for any signs of volume-driven breakouts to determine the next directional move.
Stay tuned for tomorrow’s analysis as we continue to track Bitcoin’s market momentum!
