Bitcoin Price Movement Analysis for 22nd February 2021

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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.

RECOMMENDED READ:  Bitcoin price makes the final approach to a new yearly high as investors anticipate another rally

 

Market Rationale

Source: BTC/USD on Trading View

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

Resistance: $58354
Support: $45134( immediate) $36891(mid-term)

Conclusion

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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