Bitcoin sees mixed sentiment above the $25,000 resistance with early signs that all is not well with the BTC trading group.
The name is Bitcoin
BTC is the source
grades down
$27,271
starting the last week of February in a difficult situation, although the main point of resistance has not been broken.
After a typical “fakeout” in low weekend trading, BTC/USD is back below $25,000, with the bulls weakening.
The largest cryptocurrency saw the next phase of its 2023 recovery last week, making rapid gains until hitting six-month highs.
But the good times didn’t last, as February saw a slow, more successful than January’s 40% gain. How will the rest of the month go?
It should be recorded monthly, with foreign exchange rates used from the US Federal Reserve in minutes.
Right now, Bitcoin reserves should jump to an all-time high, with miners in full recovery mode.
Cointelegraph looks at these factors in the analysis of BTC prices for the last week of February.
The RSI creates a “bearish divergence” alarm.
After a slow start to the weekend before the days of macroeconomic data results, Bitcoin woke up on Sunday evening to return above $ 25,000.
However, this did not last long, as Cointelegraph reported that indicators on exchange order books indicate manipulative moves by high-level traders.
After a weekly drop near BTC/USD held below $24,000 before returning to levels similar to Saturday, where the pair is still trading at the time of writing, like data from Cointelegraph Markets Pro and TradingView.
For traders there is real reason for caution.
“Doesn’t affect the weekend PA. securities for market hours,” wrote Crypto Chase in part in a Twitter summary.
Analysts have already flagged the order book activity, questioning how long the trend will continue with bulls unable to produce high numbers.
A recent document from the Binance order book confirmed that the high-level support, known as the “bid wall,” has moved down to $23,460, giving the price room to move down.
Trader and analyst Matthew Hyland admits that it is “very difficult to predict” whether Bitcoin can break higher in the short term.
Holding that spot is around $22,800 if there is a setback, then the key is broken, but “it doesn’t surprise me,” he said that day.
Another concern about the timing of the partnership is Venturefounder, a partner at the data level in the CryptoQuant chain.
In a Twitter thread, he pointed out that external factors such as “macro weakness” can quickly have a bearish effect on crypto markets.
“Bitcoin bearish RSI continues to diverge… almost the other way from the May-July 2021 period. I expect some macro weakness that BTC will return to $ 19-20k real fast,” said the words.
Venturefounder pointed out the Relative Strength Index (RSI) metric, which measures how overbought or overbought a stock is at a given price. In 2021, the RSI was rising in relation to a BTC price correction, and ended at its current high of $69,000 in November of that year.
All eyes on the FOMC minutes and the US dollar. in dollars
What that “weakness” means in macro markets remains to be seen.
Next week has fewer macro triggers than last, with the US economy sputtering. with the release of data, including personal spending such as the Personal Consumption Expenditure Index (PCE).
However, the event on the radar of most crypto experts is the release of minutes from the Federal Open Market Committee (FOMC) meeting of February at the Fed.
This is where the final interest rate hike is decided, with the hope that Fed Chairman Jerome Powell has included the talk of a moratorium on monetary policy, at least.
“We have the FOMC minutes coming out on Wednesday where Powell will announce that interest rate hikes will be ‘relaxed’,” Crypto Chase said in the event.
“I’m starting to think about entries in the middle of next week.”
But not everyone is convinced that the FOMC minutes will go smoothly. Among them is investment research firm Capital Hungry, which was criticized this week for being “sneaky hawkish.
