Bitcoin faces do-or-die weekly, monthly close with macro bull trend at stake
Bitcoin (BTC) is keeping traders guessing as the future of the bull market hinges on the last week of February.
In several tweets on Feb. 17, popular trader and analyst Rekt Capital noted the important battles of resistance taking place in BTC/USD on different timeframes.
Bitcoin price follows a downtrend in the market
Bitcoin hit new six-month highs this week as the latest opportunities for its recovery in 2023 have fueled a raging bull vs. bear debate.
After consolidating earlier in the month, February proved to be something of a reckoning point for bitcoin price strength. Profits were much harder to lock in than in January, when BTC/USD surged nearly 40%.
For Rekt Capital, now is the time to pay attention – whether you are trading on daily, weekly or even monthly timeframes.
The weekly chart is arguably the biggest fight since the 2022 bear market. Bitcoin is currently trying to overcome the resistance area it failed to clear last August, but so far without success.
“Ultimately, a weekly close above this key area is what BTC needs to achieve in order to break this confluent resistance area in order to continue moving higher,” Rekt Capital. wrote in part of his last update on the weekly chart.
The picture is complicated by the two other major overhead trend lines of resistance, which are represented by the 50-week and 200-week moving averages (MAs).
As reported by Cryptooshala, they have also just formed their first-ever “death cross” — a potential nail in the coffin for those who hope a new bull market is starting.
On the monthly timeframes, the situation is no less tense. Here, too, BTC/USD “comes very close to breaking the Macro downtrend,” says Rekt Capital.
The upcoming monthly close will be the deciding factor as further strength could see bitcoin start in March. outside a descending trend line has existed since November 2021 all-time highs.
While this will be a significant event, certain signs already offer so that it can become a reality. The Bitcoin Relative Strength Index (RSI), previously at an all-time low, has “already confirmed a new bullish trend.”
BTC Price Analysis: Whales Target ‘Bull Market High’
Closer to home, intraday activity remains painfully opaque as bitcoin bulls cling to part of the weekly gain.
Bitcoin Metric Prints ‘Mother Of All BTC Bullish Signals’ For Fourth Time Ever
Two trips above $25,000, however, did not result in a change in resistance and support, and at the time of writing, BTC/USD is trading at around $24,500, according to data from Cryptooshala Markets Pro and trade view showed.
While Rekt Capital celebration a confirmed breakthrough, others remain fearful that this entire episode was the result of manipulation by market whales.
Analyzing the activity of the order book on Binance, the monitoring of the resource Material Indicators showed that he had no doubts about the false nature of the “strength” of the current price.
The whales were pushing demand support up, creating the illusion of a bull market breakout.
“We already have 2 opt-outs, so if they get one, that’s a bonus.” – Material Indicators wrote about double moves above $25,000.
“IMHO, the goal was to increase the distribution range and reduce demand liquidity to a bull market high.”
The attached order book chart captured this action, along with whale volumes decreasing as the spot price rose, a phenomenon that Material Indicators recently dubbed “whale divergence.”
The views, thoughts and opinions expressed here are those of the authors only and do not necessarily reflect or represent the views and opinions of Cryptooshala.
Credit : cointelegraph.com