empty
08.02.2024 05:43 PM
Bitcoin consolidated above $44k: has the bullish rally resumed?

Bitcoin has been in a consolidation phase for the past week and a half, with the price locked within a narrow range of $40.5k–$43.4k. During this period, price changes fluctuated around 1%, and trading activity did not exceed $25 billion. Meanwhile, various categories of investors continued to actively accumulate BTC coins, but there was no clear confidence in the cryptocurrency's bullish prospects.

This image is no longer relevant

We considered two scenarios for Bitcoin's development, and as of February 8, the asset approached the realization of the bullish scenario. The cryptocurrency consolidated above $44k and continues to rise towards the $44.5k level. Trading volumes and buyer activity on the asset's network significantly increased, indicating the potential for continued growth. However, it is premature to claim that Bitcoin has fully resumed a bullish rally.

Bullish Scenario

Recall that the bullish scenario for Bitcoin involves the cryptocurrency resuming its upward movement to the $45k level after a local correction. Near this mark, the 0.618 Fibonacci level passes, which is a key resistance zone and, at the same time, the final zone for corrective movement in the long term. To eliminate the probability of a repeat decline and a retest of the shoulders level at $40.5k, the asset needs to break through $45k.

This image is no longer relevant

As of writing, Bitcoin is trading near the $44.5k level, with daily trading volumes around $24 billion. It is worth noting that trading volumes remain low, while the number of unique addresses on the BTC network continues to grow, which is a positive signal. Bitcoin is gradually approaching the broad accumulation zone of $44.5k–$45k, where a local pullback may occur.

This image is no longer relevant

On the 4-hour chart, the stochastic oscillator has entered the overbought zone, indicating the prospect of a cryptocurrency price pullback in the near future. Among the potential levels for a local correction, $43.9k and $43.4k can be highlighted. However, Bitcoin doesn't need to undergo a local correction immediately after the start of the rally, but resistance from sellers will increase. Therefore, fundamental macro factors may play a crucial role in the upcoming retest of $45k.

Fundamental Background

Moderate optimism is gradually returning to the cryptocurrency market, as well as to other financial markets. Investors still hope that the Federal Reserve System will begin easing monetary policy before the second half of 2024. As the Fed meeting has just concluded, and inflation data will be released next week, traders will be monitoring labor market indicators.

This image is no longer relevant

Conclusion

Bitcoin has emerged from a state of dormancy, and the cryptocurrency market has entered an active phase of upward movement. In the context of the global situation, this process occurs within the framework of a corrective movement, making it crucial for investors that Bitcoin consolidates above $45k. However, given the possibility of negative macroeconomic data, it is advisable to be prepared for a decline in BTC quotes. Considering that selling volumes remain high, this scenario also appears likely.

Artem Petrenko,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Solana spot ETF around corner

Right now, Solana is in the spotlight for traders. According to the latest reports, the US Securities and Exchange Commission (SEC) has requested that potential Solana ETF issuers submit amended

Jakub Novak 16:23 2025-06-11 UTC+2

The Crypto Winter Is Becoming a Thing of the Past

Bitcoin is showing strong growth and came within a step of reaching a new all-time high. However, it's important to understand that taking this final step will be quite challenging

Jakub Novak 10:18 2025-06-11 UTC+2

Trading Recommendations for the Cryptocurrency Market on June 11

Bitcoin is undergoing a correction following yesterday's rapid surge to the $110,500 area, while Ethereum remains vibrant—having gained over 6% yesterday and currently trading at $2,785. Given such a strong

Miroslaw Bawulski 09:01 2025-06-11 UTC+2

Bitcoin Resumes Growth — And There Are Reasons Behind It

Bitcoin has resumed its upward movement, pulling other cryptocurrency assets along with it. Today's rise during the Asian session clearly points to a breakout of several major technical resistance levels

Jakub Novak 10:12 2025-06-10 UTC+2

Trading Recommendations for the Cryptocurrency Market on June 10

Bitcoin has finally broken through the $107,000 level, and during today's Asian trading session, it surged rapidly to around $110,000, stopping just a step away from updating its all-time high

Miroslaw Bawulski 09:30 2025-06-10 UTC+2

Trading Recommendations for the Cryptocurrency Market on June 9

Bitcoin has reached its recently favored level of $106,500 again, even though Friday's U.S. labor market data did not support this rise. Ethereum also strengthened over the weekend, but today's

Miroslaw Bawulski 09:21 2025-06-09 UTC+2

Technical Analysis of Intraday Price Movement of Litecoin Cryptocurrency, Thursday June 05, 2025.

On the 4-hour chart of the Litecoin cryptocurrency, there is an appearance of a Descending Broadening Wedge pattern which indicates that there will be a strengthening in the near future

Arief Makmur 09:53 2025-06-05 UTC+2

Trading Recommendations for the Cryptocurrency Market on June 5

Bitcoin is struggling to reach $106,000 less frequently and is dropping toward $104,000 more often, which is a rather concerning short-term signal. Sooner or later, this pattern could lead

Miroslaw Bawulski 09:20 2025-06-05 UTC+2

Trading Recommendations for the Cryptocurrency Market on June 4

Bitcoin and Ethereum keep trying to break through key resistance levels but continue to face the same obstacle. On one hand, this suggests a cautious approach by major market players

Miroslaw Bawulski 09:19 2025-06-04 UTC+2

The Correlation Between BTC and Global M2 Liquidity Remains High

Bitcoin still cannot firmly hold above the $106,000 level, which raises certain concerns. While other altcoins and tokens have been performing much better, at least in recent days, the fact

Jakub Novak 09:17 2025-06-04 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.