Bitcoin Technical Analysis February 24th

Bitcoin (BTC) failed to continue its uptrend on Feb. 23 and is now nearing yearly lows again.

Bitcoin rejected at higher level

Bitcoin attempted to surge higher on February 23 but was quickly rebuffed and crashed. The decline continued on Feb. 24 and BTC broke the $36,600 horizontal support area.

Bitcoin is currently nearing its January low of $32,900 (green icon). The last time it reached this zone, BTC made a long wick down and bounced back up.

BTC/USDT daily chart | Source: TradingView

Bearish signal from the indicator

The technical indicators on the daily timeframe are bearish as both the RSI and MACD are bearish. The former is below 50 while the latter has entered negative territory. Both are signs of a downtrend.

On the upside, the price just fell below the lower band of the Bollinger Bands indicator. While this could be the catalyst for a near-term rebound, it looks like the trend remains bearish.

BTC/USDT daily chart | Source: TradingView

The six-hour chart shows Bitcoin hovering just above the $34,500 horizontal support area. It previously dipped below this level on Jan. 24 before regaining it.

Furthermore, a short-term bullish divergence is slowly forming on the RSI. This is consistent with the Bollinger Band signal, suggesting that a rally could take place in the short-term.

However, the long-term trend is likely to be downward.

BTC/USDT 6 hour chart | Source: TradingView

Count waves

Wave count shows that Bitcoin started a five-wave bearish impulse on Feb. 11 (black). If true, it is currently in its fifth and final wave.

The price is currently trading at the confluence of support levels, which could act as the bottom of wave five. This level also coincides with the 1.61 external Fib retracement level of wave four (black) and the 0.618 length of wave three (white).

BTC/USDT 2 hour chart | Source: TradingView

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions

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