For Bitcoin, the past 48-hours have been tumultuous. After hitting $58354 on February 21, the asset is currently down ~5 per cent and is currently priced at $54916. Bitcoin’s market cap stayed above $1 trillion, but it may be the beginning of a correction for the largest digital asset.
Bitcoin 1-day chart
On January 27, Bitcoin registered a local bottom at $29,510, after which it was on a significant incline. The asset has risen by more than 70% for the month, but over the course of the rise, the BTC has oscillated within the pattern of the growing wedge.
At the time of the press, the likelihood of a major breakout is clear, with a bearish breakout possibly for Bitcoin. According to Fibonacci Retracement lines, the immediate resistance to BTC was $45,134, which was violated on 8 February after the Tesla news broke out.
One of the features noted in the above chart is also the bearish difference between trading volume and rising prices.
Currently, few market measures indicate a price correction. The MACD indicator was able to achieve another high bullish in the map, but the Relative Strength Index or RSI established a price divergence.
Purchasing pressure may face a heavy dip at this stage, falling under the over-purchased area.
Stochastic RSI is also indicative of a pattern reversal after spending much of the month in the over-purchased zone.
Key Resistance and Support
Support: $45134( immediate) $36891(mid-term)
Considering that most indicators are bearish, a short-term position can be opened in the charts. An entry can be made at $56,000, along with a take-up range of $45,200. A stop-loss range of $60-62k should be appropriate.
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