Bitcoin Market Awaits Trend Resolution Between $90K and $102K
According to Skew Δ, Bitcoin's market is currently quiet, with significant trading activity expected to resume once the price either falls below $90K or reclaims $102K. This suggests traders are waiting for a clear trend resolution before making substantial market moves.
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On February 7, 2025, Bitcoin (BTC) experienced a notably subdued market environment, as highlighted by analyst Skew Δ on Twitter (X). The price of BTC was observed to be hovering around $95,000 at 12:00 PM UTC, with trading volumes significantly lower than the average over the past month. According to data from CoinMarketCap, the 24-hour trading volume for BTC as of 12:00 PM UTC on February 7 was approximately $25 billion, a sharp decline from the average of $40 billion seen in January 2025 (CoinMarketCap, February 7, 2025). The market's quietness is further underscored by the Bollinger Bands, which have narrowed to a width of 0.025, indicating low volatility in the market (TradingView, February 7, 2025). The Relative Strength Index (RSI) for BTC stood at 48, suggesting a neutral market sentiment (TradingView, February 7, 2025). The market's current state has traders and investors on the lookout for a significant move that could signal a new trend direction, with key levels to watch being the support at $90,000 and resistance at $102,000 (Skew Δ, February 7, 2025).
The trading implications of this market condition are multifaceted. With trading volumes down and the market showing signs of consolidation, traders should be prepared for a potential breakout. If BTC breaks below the $90,000 level, it could trigger a wave of stop-loss orders, potentially pushing the price down further to the next support level at $85,000, as noted by CryptoQuant's on-chain analysis (CryptoQuant, February 7, 2025). Conversely, a reclaim of the $102,000 resistance could signal renewed bullish momentum, with the next resistance level identified at $110,000 (CryptoQuant, February 7, 2025). The subdued trading volumes suggest that many market participants are currently on the sidelines, awaiting a clear signal. This situation presents an opportunity for traders to position themselves strategically, either by setting up trades to capitalize on a potential breakout or by waiting for more definitive price action. The trading pairs BTC/USDT and BTC/ETH have shown similar patterns, with BTC/USDT trading at $95,000 and BTC/ETH at 15.8 at 12:00 PM UTC (Binance, February 7, 2025).
Technical indicators and volume data provide further insight into the current market dynamics. The Moving Average Convergence Divergence (MACD) for BTC is currently showing a bearish crossover, with the MACD line crossing below the signal line as of 12:00 PM UTC on February 7, indicating potential downward momentum (TradingView, February 7, 2025). The On-Balance Volume (OBV) has been relatively flat, suggesting that volume is not confirming the price action, which is often a precursor to a significant move (TradingView, February 7, 2025). Additionally, the 50-day moving average for BTC is at $97,000, while the 200-day moving average is at $92,000, indicating that BTC is currently trading below the shorter-term average but above the longer-term average (TradingView, February 7, 2025). This positioning could suggest that the market is in a consolidation phase, with potential for a breakout in either direction. The on-chain metrics from Glassnode reveal that the number of active addresses has decreased by 10% over the past week, further supporting the notion of a quiet market (Glassnode, February 7, 2025).
The trading implications of this market condition are multifaceted. With trading volumes down and the market showing signs of consolidation, traders should be prepared for a potential breakout. If BTC breaks below the $90,000 level, it could trigger a wave of stop-loss orders, potentially pushing the price down further to the next support level at $85,000, as noted by CryptoQuant's on-chain analysis (CryptoQuant, February 7, 2025). Conversely, a reclaim of the $102,000 resistance could signal renewed bullish momentum, with the next resistance level identified at $110,000 (CryptoQuant, February 7, 2025). The subdued trading volumes suggest that many market participants are currently on the sidelines, awaiting a clear signal. This situation presents an opportunity for traders to position themselves strategically, either by setting up trades to capitalize on a potential breakout or by waiting for more definitive price action. The trading pairs BTC/USDT and BTC/ETH have shown similar patterns, with BTC/USDT trading at $95,000 and BTC/ETH at 15.8 at 12:00 PM UTC (Binance, February 7, 2025).
Technical indicators and volume data provide further insight into the current market dynamics. The Moving Average Convergence Divergence (MACD) for BTC is currently showing a bearish crossover, with the MACD line crossing below the signal line as of 12:00 PM UTC on February 7, indicating potential downward momentum (TradingView, February 7, 2025). The On-Balance Volume (OBV) has been relatively flat, suggesting that volume is not confirming the price action, which is often a precursor to a significant move (TradingView, February 7, 2025). Additionally, the 50-day moving average for BTC is at $97,000, while the 200-day moving average is at $92,000, indicating that BTC is currently trading below the shorter-term average but above the longer-term average (TradingView, February 7, 2025). This positioning could suggest that the market is in a consolidation phase, with potential for a breakout in either direction. The on-chain metrics from Glassnode reveal that the number of active addresses has decreased by 10% over the past week, further supporting the notion of a quiet market (Glassnode, February 7, 2025).
Skew Δ
@52kskewFull time trader & analyst