FX.co ★ Bitcoin - Technical Analysis of the Situation

The inability of the bullish players to maintain upward momentum has resulted in long upper shadows on the monthly candles. However, in February, the bearish players chose not to merely focus on these shadows. Consequently, the bears launched a significant offensive towards the end of the month. Currently, the weekly support level (88040) has been tested, with the weekly medium-term trend (81261) and the monthly short-term trend (79774) ahead.

On the daily timeframe, Bitcoin is testing the target for a cloud breakout (87712 - 85237). This target is further supported by the weekly level (88040). The outcome of the interaction with these important levels could influence the development of events over a longer period. Therefore, a pause in the current movement is possible, which may lead to either a rebound or a breakdown. The relevant levels in case of a breakdown are indicated above. If a rebound occurs, we anticipate a corrective rise, with the nearest targets being the levels of the daily Ichimoku cross (92406 - 94058).

On the lower timeframes, we observe the outlined breakout. The market may begin to develop an upward correction. The key levels will serve as important reference points during this process, currently identified as 89589 (the central pivot level for the day) and 93557 (the long-term weekly trend). A breakdown of the trend and its reversal could alter the current balance of forces.

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Technical Analysis Components:

• Higher Timeframes: Ichimoku Kinko Hyo (9.26.52) and Fibonacci Kijun levels
• H1: Classic Pivot Points and 120-period Moving Average (weekly long-term trend)