Bitcoin sets lower low as 2021 resistance teases Hodler

Bitcoin continued to decline on Feb. 3 as analysis showed old resistance levels have returned and bulls are mocking.

BTC/USD chart 4 hours | Source: TradingView

The $38,600 resistance is back

Data from TradingView painted another intriguing picture for BTC on Thursday, with the pair setting a fresh low at $36.275.

After shocking moves in tech stocks in Wednesday’s trading session, the crypto market also took a hit as major tokens struggled to stabilize.

Scaling the chart, popular trader and analyst Rekt Capital once again reveals the $38,600 area – resistance sometime in 2021 – as a barrier for bulls to break.

“Indeed, BTC turned a bullish wick into resistance during the recent rally. For now, that $38,600 area is still viewed as resistance.”

BTC/USD Chart | The source: rect capital

For others, including trader Anbessa, bitcoin is “the lower the better.” This is consistent with expectations that a major collapse will occur before a full recovery.

#BTC To update

– dead cat in rising LTF wedge, breakout & sequel📉
– current mid-range support levels, M-neckline and downtrend channel (since November 21)

The deeper we go, the better the r:r ratio for a new one #medium term LONG entry. Eg nuke scenario (right) crowded greedy entry pic.twitter.com/nCJVcHiQjc

— AN₿ESSA (@Anbessa100) February 3, 2022

“- bounce dead cat in rising wedge on long-term timeframe, breakout and continuation.

– Current support level between range, M-neck & downtrend channel (as of 11/21).

The lower the r:r ratio, the better for a new long entry point in the medium term. Example: correct scenario: entry point for overflowing greed”.

Meanwhile, the tech stock theme has erased the positive sentiment from other macro signals, with Russia’s proposal to allow banks to sell bitcoin and India’s new crypto tax proposal showing a condescending attitude.

Puell Multiple returns to oversold classic territory

Moving on to on-chain indicators, this week’s Puell Multiple follows Bitcoin’s Relative Strength Index (RSI) by forming a key oversold signal.

Developed by David Puell, this popular indicator compares miner revenue to spot prices to determine when spot prices are too high or too low.

The Puell Multiple is currently trending down and is at its lowest level since June 2021, the midpoint of the previous pullback after China banned mining.