After experiencing an uptrend in recent weeks, Bitcoin (BTC) has entered a narrow consolidating range. Bitcoin has been moving steadily between US$ 42,500 (around Rp. 606 million) and US$ 46,000 (around Rp. 656 million) over the past week.
Bitcoin momentum seems quite strong for now. US$ 46,000 (around Rp. 606 million) is the first resistance level that needs to be surpassed. The next resistance level is in the range of US$ 50,000 (around Rp. 713 million) and US$ 52,000 (around Rp. 741 million). Bitcoin needs to test both the 200 daily moving average as well as the US$52,000 level, which was previously a strong resistance level.
If the price moves down, then US$ 42,500 (around Rp. 606 million) has become a strong support for the past week. If a breakout occurs below this level, the price may return to the US$ 30,000 level (around Rp. 427 million).
Regarding market movements in the third week of February 2022, Luno Indonesia Country Manager Jay Jayawijayaningtiyas said, so far, Bitcoin is still showing low volatility, and is trading in a narrow consolidation range, namely US$42,000-46,000 (around Rp. 599-656 million). The price movement which tends to slow down is probably due to the increasingly heated conflict between Russia and Ukraine.
As a result, investors are hesitant to determine their move in the crypto market. A similar sentiment is also reflected in the Fear & Greed Index where the index again shows the Fear level.
“If BTC is able to break through its strongest resistance level at around US$ 46,000 (around Rp. 656 million), then it is possible that trading volume in the market will increase and altcoins will start moving up.”
On the other hand, Bitcoin volatility is still low, and is consolidating in a narrow range. At the time this report was written, Bitcoin was trading at around US$44,000 (around Rp. 627 million).
Although there is no significant price movement, crypto-related news has been widely discussed. In the past week, macroeconomic news has again become a hot topic where the inflation rate in the US continues to rise as a result of geopolitical fears due to the tense situation between Russia and Ukraine.
The correlation between coins with large market caps is still high, but not as high as last week. The top three coins haven't seen much change since last week. For now, ETH is showing movement as an alternative to BTC.
Some of the best-performing coins in 2021 didn't perform as well in 2022. SOL is down 42% on the year to become one of the worst performing altcoins of the past week, along with Axie and Near.
Although Solana and Near performed poorly, other Tier-1 coins performed fairly well. AVAX and EGLD rose last week to rank as the top three performing coins of the past week.
If the rebound in the market continues, then high-risk traders or investors may switch from Bitcoin to other smaller altcoins, and Bitcoin dominance may fall to around 40%.