Bitcoin disappointed bulls on Feb. 2 as a fresh attempt at flipping higher levels to support gained little momentum.
Analyst: $35,000 break will trigger $41,000 retest
In what is becoming an eerily predictable period for price action, BTC/USD rose to multi-day highs of $35,670 before correcting lower, nonetheless producing daily gains of around 2%.
The ability to cement new support levels is key for traders this week, with Michaël van de Poppe still optimistic that fresh upside is in store should $35,000 conversely hold.
“If that happens and break through $35,000, I think we’re going to clearly break through $38,000,” he said on Monday in a YouTube update.
The upside should not stop there, van de Poppe added, forecasting a retest of the area immediately beneath all-time highs of $42,000.
“If we fail to break out above $35,000 or make a fake breakout and break down towards the range again, the downside is $32,000,” he said about a bearish scenario.
On Monday, fellow trader Josh Rager had highlighted the potential path for deeper losses should the $32,000 range itself disintegrate.
“If price breaks down here, areas of interest remain at $24k and $19k,” he tweeted.
“So far so good with Bitcoin – ranging and holding support but want to see break back above $40k for more upside.”
Ether price in battle for all-time highs
With action ongoing at press time, attention was more focused on altcoins and in particular largest altcoin Ether. Unlike Bitcoin, direction was clear for ETH/USD, which gained 7% on the day to come increasingly closer to all-time highs of $1,475.
With Rager anticipating an incoming break of those highs, the door was open for a strong start to the launch of dedicated Ether futures from CME Group, scheduled for February 8.
“Ether implied vol[atility] remains elevated ahead of the CME futures listing on the 8th,” on-chain monitoring resource Skew noted on Tuesday.
Elsewhere on altcoin markets, XRP stayed lower after falling precipitously on Monday, losing 50% of its local high of $0.75.
Dogecoin, which together with XRP had formed a focus for Reddit investors, also saw losses, nonetheless preserving $0.03 per token at press time.
With Bitcoin yet to replace them as Redditors’ favored hedge-fund-busting play, anticipation of such an event even made it to mainstream news. Funds, CNBC noted on Monday, are short Bitcoin to the tune of $1 billion.
“There is a large and emerging group of institutions that have an enormous capital base that are reallocating to this space,” Michael Bucella, general partner at crypto asset manager BlockTower Capital, reiterated to the publication.
“And if you think about the supply-demand model of a commodity, the supply curve is declining over time to effectively zero, and the demand is increasing exponentially.”