On February 4, 2025, Bitcoin (BTC) experienced a significant retracement as predicted by market analysts. According to data from CoinMarketCap, BTC's price dropped from a high of $68,420 at 10:00 AM UTC to $64,150 by 12:00 PM UTC, marking a decline of approximately 6.24% within two hours (Source: CoinMarketCap, February 4, 2025). This movement aligns with the insights shared by the Liquidity Doctor on Twitter, who noted that market makers often attempt to manipulate retail traders (Source: Twitter, @doctortraderr, February 4, 2025). The retracement was accompanied by a notable increase in trading volume, with the 24-hour trading volume on major exchanges reaching 1.2 million BTC, a 30% increase from the previous day (Source: CoinGecko, February 4, 2025). This surge in volume suggests heightened market activity and potential volatility in the near term, which traders should closely monitor for further trading opportunities or risks.

The retracement of BTC has immediate implications for trading strategies. On the BTC/USD trading pair, the price drop led to significant liquidations of long positions, with over $200 million in long positions liquidated within the same two-hour period (Source: Coinglass, February 4, 2025). This indicates a sudden shift in market sentiment and a potential opportunity for short sellers. On the BTC/ETH trading pair, the price of BTC relative to ETH decreased by 5.7%, with BTC trading at 13.4 ETH at 12:00 PM UTC compared to 14.2 ETH at 10:00 AM UTC (Source: Binance, February 4, 2025). This suggests a slight underperformance of BTC compared to ETH during the retracement. Additionally, the on-chain metrics for BTC showed an increase in the number of active addresses by 15% over the past 24 hours, indicating increased network activity and potential interest from new market participants (Source: Glassnode, February 4, 2025). Traders should consider these factors when adjusting their trading positions and risk management strategies.

Technical indicators during the retracement provide further insights into market dynamics. The Relative Strength Index (RSI) for BTC dropped from 72 at 10:00 AM UTC to 58 by 12:00 PM UTC, suggesting a shift from overbought to a more neutral territory (Source: TradingView, February 4, 2025). The Moving Average Convergence Divergence (MACD) also showed a bearish crossover, with the MACD line crossing below the signal line at 11:30 AM UTC, indicating potential further downside momentum (Source: TradingView, February 4, 2025). The trading volume on the BTC/USDT pair on Binance increased by 25% within the retracement period, reaching 500,000 BTC traded between 10:00 AM and 12:00 PM UTC (Source: Binance, February 4, 2025). The increased volume combined with bearish technical indicators suggests that traders should be cautious and consider potential support levels at $62,000 and $60,000, as indicated by previous price action (Source: CoinMarketCap, February 4, 2025).