The queen of cryptos has gone into the red for this month of February. Good news for those who sold bitcoin (BTC) at $24,000.
Update on the medium-term situation of bitcoin
Bitcoin closed yesterday’s session almost 6% lower. Its price thus fell below the opening price of the month, at $23,143. Further, the price broke through the $22,350 support. The break of this first support could be considered as a break of the January bull market structure. Thus, one could envisage further correction, before bitcoin (BTC) continues its bullish rally. How far will this retracement move go? Several levels are to be monitored.
The closest level of support is the area between $20,000 and $20,350. This is a psychological area to monitor. Additionally, this level aligns with the 50% fibonacci level of the $16,485 and $24,2246 range. This zone is also just above the 200-day moving average. Thus, the price of bitcoin (BTC) could retrace to this level.
On the other hand, another lower level is also interesting. This is the area around $18,142, the 78.6% level of the Fibonacci retracement tool. If bitcoin breaks above $20,000, the $18,142 level will be the fib level to watch. Our long position during the February 08 analysis is therefore a bit risky. Indeed, another lower level is even more interesting for a buy position:
Entry point: $18,142;
Stop: $17,439;
Goal: $25,000.
A potential drop below $20,000?
With the break of the $22,350 support, bitcoin’s short-term structure turns bearish. Thus, one might consider a decline in the price to the psychological level of $20,000. Short-term traders can take advantage of this corrective move.
The supply zone just above the month’s open looks interesting to go short. We therefore envisage the return of bitcoin to this level. Additionally, this zone aligns with the 61.8% fib level of the $24,246 and $21,653 range. Here is the short-term bearish setup that we could take:
Admission: $23,256;
Stop: $23,692;
Goal 1: $20,000;
Goal 2: $18,142.
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