Bitcoin enjoys 'plenty' of demand at $98K as analyst eyes RSI breakout

From cointelegraph by William Suberg

Bitcoin $97,309circled $98,000 into the Feb. 6 Wall Street open as traders flagged multiple bull signals.

BTC/USD 1-hour chart. Source: Cointelegraph/TradingView

Traders reject bearish BTC price takes

Data from  Cointelegraph Markets Pro  and  TradingView  showed consolidation taking over on BTC/USD, which traded in a tight channel.

While still unable to tackle the $100,000 mark, Bitcoin cooled volatility as market participants adopted a wait-and-see attitude.

“Higher low locking in,” popular trader Jelle  wrote  in one of his latest posts on X. 

“Objective remains the same, reclaiming $100k. Coincidentally the range mid-level as well. Flip that, and another test of $110,000 is next.”

BTC/USD chart. Source: Jelle/X

Fellow trader Daan Crypto Trades identified spot-market demand as a reason for optimism about BTC price trajectory.

“$BTC Trading at a pretty solid spot premium showing there's plenty of spot demand around these levels which have made it so Bitcoin has held strong during all the recent turbulence,” he  told  X followers.

An accompanying chart demonstrated derivatives traders’ relative caution versus spot buyers.

“With Spot ETFs and Institutions like Strategy (MicroStrategy) accumulating coins at a rapid pace, there's a constant changing of hands going on,” Daan Crypto Trades added. 

“I think this should eventually lead to supply drying up around this region and a move higher.”

BTC/USD 1-day chart with perp basis. Source: Daan Crpyto Trades/X

Another bullish event in the making came courtesy of Bitcoin’s relative strength index (RSI) indicator on daily timeframes.

As highlighted by popular trader and analyst Rekt Capital, daily  RSI  was forming a narrowing channel — with a breakout anticipated in future.

“Aside from Bitcoin's price action successfully retesting the blue trendline as support... The Daily RSI is forming a distinctive Channel,” Rekt Capital  explained  alongside the 1-day BTC/USD chart.

“The RSI is holding support at the Channel Bottom in preparation for a rally to the Channel Top over time.”

BTC/USD 1-day chart with RSI data. Source: Rekt Capital/X

Earlier,  Cointelegraph reported  on a rare 4-hour RSI chart event revealing Bitcoin’s latest local bottom.

Bitcoin, crypto “lack” upside catalysts

Adopting a more risk-off tone, trading firm QCP Capital suggested that Bitcoin was not immune from further external volatility shocks.

Related:  ‘Atypical’ Bitcoin bull market can extend beyond March 2025 — Research

In particular, geopolitical events could spark another trip lower for BTC/USD, it warned on Feb. 5, just days after nerves over a US trade war  punished risk-assets  across the board.

“BTC's resilience above $90k is impressive, but we remain cautious about negative geopolitical shocks from U.S.-China tensions, particularly amid global market uncertainty,” QCP summarized in a bulletin to Telegram channel subscribers. 

“Furthermore, the lack of near-term crypto-specific catalysts leaves the market vulnerable to negative price shocks. In this environment, a defensive approach and risk management are key, especially given the large liquidations observed on Monday.”