Bitcoin has been rising steadily in February amid a positive risk sentiment as the central banks ended their tightening cycles and are now looking for the right moment to start easing their policies. Recession fears have also dissipated with resilient economic data and even some reacceleration lately. Moreover, the market is also looking forward to the halving event set for April.
Bitcoin Technical Analysis – Daily Timeframe
On the daily chart, we can see that Bitcoin continues to surge to new highs amid a positive risk sentiment and lots of FOMO. The price is now a bit overstretched as depicted by the distance from the blue 8 moving average. In such instances, we can generally see a pullback into the moving average or some consolidation before the next move.
Bitcoin Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that from a risk management perspective, the buyers will have a much better risk to reward setup around the previous resistance at 52858 where we can also find the confluence with the trendline and the daily 21 moving average. The sellers, on the other hand, will want to see the price breaking below the trendline to invalidate the bullish setup and position for a drop into the next major trendline around the 45000 level.
Bitcoin Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that the price bounced on the red 21 moving average today and we can also notice a divergence with the MACD. This is generally a sign of weakening momentum often followed by pullbacks or reversals. The sellers will want to see the price breaking below the black trendline to pile in and target a drop into the 52858 support. The buyers, on the other hand, will likely lean on the trendline with a defined risk below it to target new highs.
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