Analysts at Bexplus believe that after BTC's heavy volume rushed higher and fell back on February 4th, the short-term highest closing price was fixed at $37,619 on February 3rd, which was significantly lower than the high of $39,139 on January 14th. In other words, BTC is in an adjustment stage, and the market trend will still give direction signals in the short term.
BTC's daily average transaction volume data shows that since the value fell back on January 8th, the current value is still running at a low level in the past one month. It can be seen that the main activity of BTC in the shrinking rebound stage is not high, which may obviously limit price performance. The current DeFi concept hype is at a critical stage, and it is very important to pay attention to the adjustment of BTC.
(resource from ycharts.com)
Before BTC closes to a new high, the characteristics of mainstream cryptocurrencies following BTC may be strengthened. If BTC continues to rise in the short-term and the earning effect increases, traders need to pay attention to the selling pressure of hot cryptocurrencies. When BTC is rising and the mainstream cryptocurrency is rising, the more money-making effect is, and the possible adjustments will appear in the short term. Before the highest daily closing price breaks through $40,578, traders need to be cautious about short-term opportunities.
The analysis of cryptocurrencies in real-time should be taken for informational purposes only, and in no case should it be taken as an investment signal. Every investment and trading move involves risk. You should conduct your own research when making a decision.