Bitcoin Price Recovers as BTC Adds $4.3 Billion in 3 Days: Can the Momentum be Sustained?

Dalmas Ngetich

1 year ago

2 mins read

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Bitcoin prices on an uptrend
Venezuela is a prime example of why BTC is needed
Participation levels are high, poised to increase in coming days

After Feb 8 rockets, it is clear that momentum has shifted from bearish to bullish. Further padded by supportive fundamentals, it is likely that BTC will break and close above $3,800 ushering in a demand wave that would see prices retest $6,000.

Bitcoin Price Analysis

Fundamentals

There is a crisis in Venezuela, and the government’s endless tussle is wrecking ordinary Venezuelans. To quantify how nerve-wracking it has been for Bolivar dominated investments, if you had $1 million worth of Bolivar before the super hyperinflation, that value would be worth $3.4.

That’s how grim the situation is and dark days are expected because of a political standoff. Maduro is clinching to power as the US and allies support the opposition leader. It doesn’t matter. There are no winners. The ones that stand to benefit are those who shifted their wealth to a censorship-resistant, political resistant super currency Bitcoin.

With no point of control, any Venezuelan who moved their stash to BTC before the value wiping inflation has more than quadrupled his holding and still enjoying the luxury of spending his “money” without fear of confiscation.

Candlestick Arrangements

From a top-down approach, BTC is trading within a bearish breakout pattern with resistance at $5,800–$6,000 zone.

That is almost double the prices of spot rates and a rather ambitious target considering price dumps of the last 13 months. Even so, our previous BTC/USD price analysis is valid, and as long as there is confirmation of Feb 8 bull bar, odds are prices will surge above $3,800 as prices snap back to the trend set in motion by Dec 17.

There are technical reasons backing our stand. First, BTC has support at the 78.6 percent Fibonacci retracement level after correcting from Dec 2018 highs of $4,500. Secondly, following price springs of Feb 8, we now have a double bar bull reversal pattern complete with high trade volumes.

Although there might be attempts to buy on dips, it’s preferable to wait for satisfactory breakouts. That will only happen once prices close above $3,800 as laid out in previous BTC/USD trade plans.

Technical Indicators

Propelling prices from $3,400-500 zone were high volumes exceeding those of Jan 28—17k and those of Jan 20 of 20k. However, Feb 8 volumes were lower than that of Jan 10. All the same, at 31k, it surpassed previous averages of 11k. As a result of this, it is likely that bulls are back and all we need is a close above $3,800 as bulls reaffirm Feb 8 bull bar.

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.