Daily Report – Bitcoin and Market Update (February 12 2022)

By TheBirbNest

HTF 12H:

The middaily chart is showing a wobbly defense of the Level Line support at 42334 USD after yesterday’s Russia-Ukraine tension escalating, reportedly, as the media claim. Let’s have a deeper examination of the market technical status.

Technical analysis of the 12H chart suggests that the most important level on the downside is still defined by the CTF Trailer Stop at 40496 USD. That is the main defense line to be held by bulls and it defines a clean support below which BTC bulls lose the upper hand and control over the upwards trend.

Price action of a pre-breaker setup suggests that the main support levels now are set at the highs of the candlesticks prior to the breaker – 39285 USD and 38262 USD. While it is possible to see the wicks into this area, as long as BTCUSD keeps closing the sessions over 40500 USD, there’s no technical threat to the upwards trajectory for now.

Other Level Lines define the resistances on the way up as follows:

69030
61503
58653
52670
46877

MTF 4H:

The MTF chart is showing a potential basing process in the BWAP block demand region (the orange rectangle) at 42000 USD support level.

The said demand region is seen as the orange box, which is additionally confirmed – so far – by the lower candlestick shadows rejected off the lows and reverted back to close above the 42k USD support. This suggests that below the support level there were buying orders piling up, likely to be limit buy orders.

The CTF Trailer implies that the bears are having the upper hand at this moment as long as BTCUSD fails to breach and reclaim the 43780 USD resistance. A clean break above the level would let the bulls re-gain the control over the short-term price action.

The Level Lines reveal that the most relevant short-term resistance is laid at 45769 USD.

BPRO Level Lines show supports at:

41376
38678
36208

These levels could be anticipated to serve as level-to-level references. In other words, when one level is breached, the next one in the direction of the movement can be expected to act as the next “magnet”

LTF 1H:

The hourly chart displays the most significant pivotal levels and zones defined by the BirbicatorPRO.

Locally, the most important support level is given at 42250 USD and demand wicks shown right underneath.

BWAP orange block support bitcoin at 42.4-42.6k USD region, while BTC is trying to breach the thicker supply block given in the grey area at 42.9-43.6k USD. Inside this zone, the most important resistance is set at 43120 USD and in case it is broken to the upside, the next levels to look at are 43600 USD and 45450 USD.

In case the local lows fail to hold the price action above it, the next support levels are given by the Level Lines at 41611 USD and 37659 USD.

FEAR/GREED INDEX

After the military tensions news hit the market, the sentiment has priced in more fearful environment and local micro selloffs seen across the markets: equities, cryptos (while commodities soaring).

Now the index shows a hand at 44 points on the scale, classified as FEAR.

As you already know, the crowds are usually right in the middle of trends and usually wrong at the extremes. As the trend develops (less local oscillations, pullbacks), the sentiment catches up late to additionally add to the momentum in the direction of the breakout.

The way I see it, it is still the first instance, where the momentum is building in favor of the bulls as we’ve approached a potential short-term middle levels on the way up (assuming no unexpected fundamental factors come otherwise), while potentially expecting 50k USD level to be the main region of resistance for now.

I also made sure to cover the inter-market correlations including stocks, commodities, cryptos on the yesterday’s webinar. If missed it, please catch up asap below.

God bless!