Bitcoin (BTC) looks poised to record its fifth consecutive positive monthly candle despite its pullback from recent highs as the top crypto currently trades near $43,500, a 2.8% gain on the monthly chart.
BTC/USD Chart by TradingView
“February Bitcoin futures prices are lower in early U.S. trading Wednesday,” noted Kitco senior technical analyst Jim Wyckoff, who added, "Bulls and bears are on a level overall near-term technical playing field.”
Bitcoin futures 1-day chart. Source: Kitco
“The direction in which prices break out above the resistance line or below the support line will very likely be the next significant near-term price trend for BTC,” Wyckoff said.
Analysts at RJ Trading noted that “Bitcoin spent most of last week grinding lower and sweeping range lows,” and has since reclaimed the 40200 lows and the 41200 VAL, both of which are signs of strength.”
BTC/USD 1-day chart. Source: Medium
“I’m looking to see if we get another retest of the yellow box during the week for long positions,” he said. “I’m expecting price to push up to the 44000 level where the POC and VAH of the range are right next to one another. If we get above those levels, then we’re likely headed back to 48000.”
Market analyst Crypto Capo called the early morning reversal from $42,340 a “Perfect bounce after deviation,” and said it “has retraced a bit front running those 44k-45k.”
BTC/USD 12-hour chart. Source: X
“[In my opinion] this was [wave 1] of [5 waves], so it could easily reach 50k in the next few days,” he said. “Fed interest rate decision today. Probably no changes and pivot in March.”
Technical analyst Emperor noted that the “Monday high was deviated,” and said that “limit sells above [that level] pushed price back down” after the closing of long positions led to a price pullback.
He said the “Yearly open above $42,400 is the area to hold for bullish LTF structure,” and added that the “Biggest challenge for bulls is spot selling.”
“Perp longs from much lower have taken profit, but there is still a small perp premium,” he concluded. “More aggressive buying at current levels is [the] last hope for bulls. If [its price closes] below $42,200 then we [will] likely continue to move down quickly.”
