Bitcoin Futures Analysis for February 6, 2025: Key Levels and Trade Plan
Current Market Overview
Bitcoin futures are currently trading at $98,710, with the bearish threshold at $98,860. This level is just below yesterday’s Value Area High (VAH) and near the Value Area Low (VAL) of two days ago. Since price is slightly below this threshold, some traders may look for a minor retest at $98,870 before confirming a short position. However, this level itself is not critical, and bearish momentum could already be unfolding.
Bearish Trade Plan for Bitcoin Futures Today
Traders looking to short Bitcoin futures should consider the following downside targets:
- $98,470 – A near-term target positioned just above today’s VWAP.
- $98,250 – The VWAP from yesterday, a key technical level where institutional traders and algorithms may react.
- $97,710 – Yesterday’s Value Area Low (VAL), an important area for potential price support.
- $97,535 – Aligns with today’s Point of Control (POC) and the VWAP from three days ago, making it a strong liquidity zone.
- Extended Bearish Targets for Bitcoin Futures:
- $96,595 – Located just above today’s VAL, an additional level where price may stabilize.
- $95,585 – Corresponds with the Value Area Low (VAL) from three days ago, a deeper downside level for extended moves.
Bullish Trade Plan for Bitcoin Futures Today
For a bullish breakout scenario, Bitcoin futures need to move above $99,540, a level that aligns with yesterday’s high, today’s high, and the first standard deviation of today’s VWAP.
Key upside targets include:
- $100,000 – A major psychological round number and the Point of Control (POC) from two days ago. This is a high-probability area for partial profit-taking.
- $100,500 – The Value Area High (VAH) from two days ago, another critical resistance level.
- Extended Bullish Target: $102,625 – Positioned just below the POC and VAH from three days ago, making it a significant level for a sustained bullish move.
Understanding Key Levels in Bitcoin Futures Trading
What Is the Value Area in Bitcoin Futures?
The Value Area (VA) is the price range where 70% of the previous session’s trading volume was concentrated. It helps traders identify where most market activity occurred, which can be used to gauge potential support and resistance zones.
- Value Area High (VAH): The upper boundary of this high-volume range.
- Value Area Low (VAL): The lower boundary, often serving as support.
What Is VWAP and Why Does It Matter?
The Volume-Weighted Average Price (VWAP) is a key intraday indicator that calculates the average trading price weighted by volume.
- Above VWAP: Indicates bullish momentum.
- Below VWAP: Indicates bearish momentum.
- VWAP Standard Deviations: Help identify extended moves and potential mean reversions.
What Is Point of Control (POC) in Bitcoin Futures?
The Point of Control (POC) represents the price level with the highest traded volume for a given session. Unlike VWAP, which is a dynamic average, POC is a fixed level where the most market activity occurred. It frequently acts as a magnet for price action and often triggers strong reactions when revisited.
Bitcoin Futures Trading Outlook for Today
The TradeCompass is not just about “above is bullish, below is bearish”—it’s a precise roadmap based on volume profile analysis, VWAP deviations, and liquidity levels, where surpassing key thresholds increases the probability of reaching profit targets. These levels are not random; they reflect where institutional traders have historically shown strong interest. And that’s where you should get interested, too.
- Bearish bias activates below $98,860, with $98,470, $98,250, and $97,710 as primary downside targets.
- Bullish bias activates above $99,540, aiming for $100,000 and $100,500 in the short term.
- Range-bound conditions remain in play, making VWAP, POC, and Value Area levels critical for intraday trading decisions.
Trade Bitcoin futures at your own risk, and for additional insights, visit ForexLive.com for expert market analysis.
This article was written by Itai Levitan at www.forexlive.com. Source