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

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.