Bitcoin's chaotic price action in February ended in a candle. Traders continually debated the significance of the plummeting cryptocurrency and are currently trading at $ 8,581.
Is not reversing a discount
After plummeting last week, Bitcoin successfully eliminated all support levels and led to the first February red candle in 6 years. Accordingly, market sentiment quickly changed from up to down. The monthly closing price is not surprising and now it is reminiscent of a reversal candle recorded in June 2019.
However, the Big Cheds trader cleverly points out the fact that scary February signals only a consolidation because of its relatively low volume.
$ BTC #Bitcoin – Have heard much talk about how bad the monthly candle was. Always look at the volume on each candle because it determines the strength of the signal
Compare this months volume to similar candle from July 19th
This is a consolidation candle, not reversal candle pic.twitter.com/JRxSiDz8m0
– Big Cheds (@BigCheds) February 29, 2020
“DI have heard a lot about how bad the monthly candles are. Always observe grade level amount on each candle as it determines the strength of the signal
Compare this month's volume with similar candles from day 19/7
This is a consolidation candle, not a reversal candle"
As of right now, the $ 8,500 level appears to be the last line of defense for the bulls before the full carnage. The BTC closing above this level on the monthly chart is considered a very positive sign of Satoshi Flipper.
Not losing the 8500 key support level is VERY BULLISH$ BTC
– Satoshi Flipper (@SatoshiFlipper) March 1, 2020
“Without losing the main support of $ 8,500 it is very bullish".
2nd pump?
Josh Rager is less optimistic about Bitcoin's short-term price action, suggesting that the price of BTC could drop to $ 8,300 or even lower in his recent tweet.
At the same time, he also believes in the story of the CME gap that can push prices back above $ 8,700 as soon as the market opens.
Continuing to make lower closes on the daily
Will stack some bids again in the $ 8300s and lower
Hey, at least we'll have a CME gap at $ 8700 – a narrative for the market to pump back up pic.twitter.com/mSMkXJPMyb
– Josh Rager 📈 (@Josh_Rager) February 29, 2020
“Continue to close lower daily
Ability of region 8,300 dollars and lower
Hey, at least we have about empty CME at 8,700 dollars – is a factor driving the pump market back "
On February 17, BTC pumped more than 6% fake to fill the CME gap before giving up all profits in a day and continuing the downtrend.
Will Bitcoin reach $ 18,000 in the coming months?
Despite the fear that is spreading throughout the cryptocurrency industry at this time due to a severe correction last week, Polar Hunt recently shared the analysis below.
The analyst tried to compare the price action between the market structure between 2014-2016 and the current market structure, showing that Bitcoin is “keeping a nice price increase” compared to the previous market cycle.
BTC following the previous market cycle to the T point on Polar Hunt's chart will mean that the asset increased to $ 18,000 (more than 100% higher than the current price) by halving in May 2020.
Although this sounds too optimistic, the chart below shows the strange similarity in the market structure between the previous and current market cycle. From these similarities, Polar Hunt adds to the credibility of its bullish argument.
This is also holding up nicely and shows how this particular part of the marketcycle is “sideways” and therefor both hard to buy and hard to hold.
Im writing these posts to show you, but also to remind my self not sell any. I actually added to my stack this Friday. pic.twitter.com/VIG2a6OZ8q
– Polar Hunt (@polar_hunt) March 1, 2020
"Keeping prices up beautifully, Show that this particular part of the market is “sideways” and Candlestick hard to buy as well hard to keep.
I write these posts to show you but also to remind myself I'm not selling any Which coin?. I actually added Stack his on 6 this".
Many analysts favor cows
Polar Hunt is not the only analyst suggesting Bitcoin will raise nearly $ 18,000 in the coming months.
In an interview with CNBC two weeks ago, Mike Novogratz – CEO of Galaxy Digital and former partner of Goldman Sachs – argued that Bitcoin could trade about 20,000 US dollars “until halving, just how far we are.” about 2 months”.
Not only did citing the catalyst move in the interview, investors have also shown Central bank policy, halving and institutional participation are also important stimulators for the growth of BTC in the future.
In addition, Survival Survivalism – traders who correctly predicted the price action of Bitcoin last week in January – proposed in post on TradingView titled “Why do I believe Bitcoin will retest the all-time high on July 1, 2020?” that BTC will trade at or above $ 20,000 on July 1. He cites a range of technical indicators to back up his point.
You can see the price of Bitcoin here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Minh Anh
Bitcoin Magazine
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