Despite Bitcoin’s Price Softening, Cautious Investment Remains Essential – Market Analysis – 2026-02-03

Market Analysis

The cryptocurrency market is exhibiting some positive signs today; however, the overall environment remains cautious and fragile. Uncertainty in the global economy continues to undermine investor confidence, leading to unclear and volatile market trends.

Over the past five days, Bitcoin’s price has experienced significant fluctuations, intensifying the prevailing market uncertainty. On January 29, Bitcoin opened at 89,300 but closed lower at 84,650, followed by a steady decline that brought the price down to 76,968 by February 1. A slight recovery was observed on February 2, with the price closing at 78,738. The Relative Strength Index (RSI) started at 25.74, dropped to 12.97, and then rebounded to 24.38, indicating an oversold condition but also hinting at some early signs of recovery. Similarly, the Money Flow Index (MFI) remains weak, reflecting subdued buying pressure and limited liquidity in the market.

Analysis of the Bollinger Bands shows that Bitcoin’s price has mostly hovered near the lower band, signaling sustained downward pressure and a weak trend. Nonetheless, on February 2, the price pushed above the lower band towards the middle band, suggesting a potential short-term bullish signal. Meanwhile, the Hull Moving Averages (HMA) for 7, 14, and 21 days are all trending downward, with the price consistently below these averages—indicating a weak to neutral trend. Long-term moving averages for 50, 100, and 200 days are also positioned well above the current price, reinforcing the presence of downward pressure over an extended period.

Regarding support and resistance, the support zone between 78,595 and 76,322 appears crucial in preventing further decline. Should this level fail, the next significant support lies between 68,507 and 68,010, which would mark a critical threshold in the event of a sharp drop. Resistance levels are notable between 79,163 and 81,500, and then again from 83,680 to 84,850, with the psychological mark at 80,000 serving as a key barrier for any price recovery. The Fear and Greed Index ranges between 14 and 26, reflecting intense fear among investors, which could present short-term buying opportunities, though the overall market weakness cannot be overlooked.

Broader news and global economic conditions are also influencing Bitcoin’s trajectory. Worldwide economic slowdown, rising inflation, and political uncertainties have dampened investor appetite. Additionally, reduced open interest and negative funding rates in the market have contributed to the existing pressure. In summary, Bitcoin is at a delicate juncture where short-term upward movement is possible, but the longer-term trend remains tilted from neutral toward bearish. Investors are advised to monitor support and resistance levels carefully and proceed with caution to make informed decisions.

Data Summary

• 1. Time:
  2026-02-03 – 00:00 UTC
• 2. Prices:
  Open: 76968.22000000
  High: 79360.00000000
  Low: 74604.00000000
  Close: 78738.61000000
• 8. Supports:
  S1: 78595.86000000 – 76322.42000000
  S2: 68507.67000000 – 68010.00000000
  S3: 67969.6 – 66034.5
• 9. Resistances:
  R1: 79163.24000000 – 81500.00000000
  R2: 83680.12000000 – 84850.33000000
  R3: 87232.01000000 – 88175.98000000
  R4: 90375.2 – 93673.1
• 10. Psychological Support:
  75000.00000000
• 11. Psychological Resistance:
  80000.00000000
• 3. Last 5 days’ closing prices:
  2026-01-29: 84650.16000000
  2026-01-30: 84260.49000000
  2026-01-31: 78741.09000000
  2026-02-01: 76968.21000000
  2026-02-02: 78738.61000000
• 4. Volume:
  BTC: 42273.5902
  USD: $3260752444.4613
• 5. Number of trades:
  10085578
• 6. Indicators:
  RSI: 24.3800
  MFI: 37.1200
  BB Upper: 100237.34000000
  BB Lower: 77683.33000000
• 7. Moving Averages:
  SMA:
  7=83129.79000000
  14=85942.40000000
  21=88960.34000000
  30=89774.15000000
  50=89029.40000000
  100=92783.46000000
  200=103766.58000000

  EMA:

  7=81946.96000000
  14=84986.18000000
  21=86576.28000000
  30=87707.71000000
  50=89363.57000000
  100=93343.59000000
  200=97380.92000000

  HMA:

  7=75322.88000000
  14=79233.46000000
  21=80853.97000000
  30=83030.79000000
  50=87763.19000000
  100=89067.05000000
  200=83351.80000000
• 12. Funding Rate:
  -0.0057% (Technically Positive)
• 13. Open Interest:
  89521.2160
• 14. Fear & Greed Index:
  14 (Extreme Fear)

Disclaimer: This market analysis is generated by AI based on historical BTC data and sentiment indicators. Use it as a reference, not financial advice.