Bitcoin (BTC) rallied on Feb. 24, reaching as high as $39,843 before being rejected. Reclaiming the $39,850 zone is crucial to continue the upward move.
Day view
Bitcoin first fell on February 24, hitting a low of $34,332. However, it bounced back shortly after, creating a long wick underneath at 8.60% strength. Additionally, this surge is helping to confirm the $34,400 area as support.
The bullish candle with the long wick below is very similar to the January 24th candle (green symbol), after which Bitcoin started a significant upward movement. Therefore, it is possible that a similar move will occur in the near future.
BTC/USDT daily chart | Source: TradingView
Bitcoin is generating divergence ahead of the bullish bounce
The 6-hour chart is showing a rebound initiated by a very clear bullish divergence (green line) in both the RSI and MACD.
Such divergences often precede upward moves, as was the case with yesterday’s Bitcoin move. This event reinforces the validity of a potential trend reversal.
BTC/USDT 6 hour chart | Source: TradingView
The two-hour chart shows BTC facing strong resistance at $39,550. This is the 0.5 Fib retracement level, the horizontal resistance area and also where the support line of the previous descending parallel channel is.
This zone rejected price on February 24, creating a long upper wick.
Therefore, its retracement is very important for the trend to be considered bullish.
BTC/USDT 2 hour chart | Source: TradingView
Count waves
The wave count shows that Bitcoin has completed a short-term five-wave bearish impulse that ended with yesterday’s low. In many cases there is an upward corrective structure behind this.
As it stands, the most likely scenario is that the price is about to complete wave A of the ABC correction.
After that, there could be another brief move lower.
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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Author
Analysis
Bitcoin Technical Analysis February 25th
Bitcoin (BTC) rallied on Feb. 24, reaching as high as $39,843 before being rejected. Reclaiming the $39,850 zone is crucial to continue the upward move.
Day view
Bitcoin first fell on February 24, hitting a low of $34,332. However, it bounced back shortly after, creating a long wick underneath at 8.60% strength. Additionally, this surge is helping to confirm the $34,400 area as support.
The bullish candle with the long wick below is very similar to the January 24th candle (green symbol), after which Bitcoin started a significant upward movement. Therefore, it is possible that a similar move will occur in the near future.
BTC/USDT daily chart | Source: TradingView
Bitcoin is generating divergence ahead of the bullish bounce
The 6-hour chart is showing a rebound initiated by a very clear bullish divergence (green line) in both the RSI and MACD.
Such divergences often precede upward moves, as was the case with yesterday’s Bitcoin move. This event reinforces the validity of a potential trend reversal.
BTC/USDT 6 hour chart | Source: TradingView
The two-hour chart shows BTC facing strong resistance at $39,550. This is the 0.5 Fib retracement level, the horizontal resistance area and also where the support line of the previous descending parallel channel is.
This zone rejected price on February 24, creating a long upper wick.
Therefore, its retracement is very important for the trend to be considered bullish.
BTC/USDT 2 hour chart | Source: TradingView
Count waves
The wave count shows that Bitcoin has completed a short-term five-wave bearish impulse that ended with yesterday’s low. In many cases there is an upward corrective structure behind this.
As it stands, the most likely scenario is that the price is about to complete wave A of the ABC correction.
After that, there could be another brief move lower.
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
Join CoinCu Telegram to keep track of news:Â https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
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