The queen of cryptos closed last week in the red. Bitcoin (BTC) fell near the February opening price. Will it go into the red as we approach the end of the month? Let’s take a look at his situation this month.
Update on the situation of bitcoin (BTC) in February
February was less bullish than January for bitcoin (BTC). Indeed, the queen of cryptos hasn’t really shown a clear trend for this month. During the first half of the month, BTC began a descent around $21,392. After that, there was an explosion in value that took it over the $25,200 hurdle. However, buyers were unable to push the price higher. Thus, the BTC closed the previous week in the red. Currently, bitcoin is trading around $23,400, a value close to the February opening price.
In the long term, we see that all these movements form a monthly candle in the form of a doji. At the moment it is a green doji, but there is a good chance that February will close in the green. Indeed, we can see several bearish signals on the daily scale. In particular, there is the presence of an RSI divergence, which began on January 21st. Incidentally, one analyst predicted that BTC could pull back around $21,000 if the $23,300 support breaks, which it does. We could therefore envisage a drop in bitcoin (BTC) below the lower part of the February range.
What position to take?
It seems that we are currently in a correction phase. In this case, a short position is the most suitable. Let’s try to find a convenient entry point to sell bitcoin (BTC). For this, the hourly scale is the most adequate.
The price is currently moving above the weekend range. Thus, we could envisage a bullish day for today and Tuesday. If this is the case, we can sell bitcoin (BTC) around $24,241. However, if Tuesday’s low will be below the weekend low, this short position will not be valid.
Entry point: $24,241
Stop: $24,728
Goal 1: $22,786
Goal 2: $21,000
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