Bitcoin’s tight consolidation near $25,000 suggests that bulls are holding their positions in anticipation of a breakthrough to the new 2023 high.
Up 11% last week and trading near major resistance at $25,000. Resource tracker Material Indicators noted in its latest update that high-volume traders have “thinned” resistance, which could spark a rally. With rising prices, speculators can drink, and whales can take advantage of this opportunity to sell positions accumulated at lower levels.
Every uptrend has many pullbacks, and Bitcoin is no exception. However, the price action of the past few months indicates a larger base pattern that may be about to break above. If this happens, Bitcoin will signal a potential trend change.
There are very few when all indicators turn bullish. If traders continue to wait for this to happen, they may miss out on a large part of the rally. Therefore, it’s a good idea to watch price action closely and trade according to your own money management principles. Successful strategies are often simple and straightforward.
Can Bitcoin and selected altcoins continue to outperform US equity markets in the near future? Let’s examine the tables to find out.
The S&P 500 index ( SPX ) returned to the 20-day exponential moving average (EMA) at 4,080 on February 10, but the bulls were unable to push the price through the overhead resistance at 4,200. This encouraged the bears as it took prices below the 20-day EMA on February 19. 17. A small positive for the bulls is that the lower levels attracted stronger buying, as seen from the long tail of the daylight candles.
The 20-day EMA is flattening, and the relative strength index (RSI) is near the midpoint, suggesting a few days of consolidation. The index could stay between the uptrend line and 4,200 for a while.
Trade throughout the district tends to be variable and random. If the bulls rally above 4,200, the index may bounce. There is resistance at 4,300, but if the bulls do not push the price further below 4,200 in the next correction, the index could rise to 4,500.
Against this assumption, if the price breaks down and falls well below the uptrend line, the index could fall to 3,764.
The US Dollar Index (DXY) broke and closed above the wedge pattern on February 16. The moving averages are nearing the end of a bullish crossover, and the RSI is near 57, indicating that the bulls are looking to pull back.
However, the bear will not give up. They will try to reverse the price below the moving average and catch the aggressive bulls. If they do, the index could drop first to 102.58 and then to 101.29.
Conversely, if the bulls do not allow the price to break below the moving average, the dip will indicate that they are buying. The index could then start a relief rally at the 38.2% Fibonacci retracement level at 105.52 and then the 50% retracement level at 106.98.
BTC/USDT is also available
It is trading near the strongest resistance at $25,211 in the last four days. Although the bears have successfully defended the level, the bulls have not given up. On February 20th they again jumped at the chance and bought at the lower levels.
In particular, the reinforcement near the highest strength is spread over the surface. Rising moving averages and RSI above 65 also indicate bulls are dominant. If the price breaks above $25,250 and holds, the BTC/USDT pair may gain momentum. There is no major resistance until $31,000; so the trip could be done in a short time.
Initial support is at the 20-day EMA ($23,218) and the next at $22,800. Sellers will need to quickly pull the price below this support to weaken the bullish momentum. Then the pair could drop to $21,480.
Buyers pushed Ether
It broke above the upper resistance at $1,680 on February 17 and defeated attempts by the bears to bring the price back below the breakout level.
A moving average slope with RSI in the positive zone indicates that the path of least resistance is up. The ETH/USDT pair could rise to $1800 first and then continue its journey to the next resistance at $2000. Traders should strictly maintain the zone between $2,000 and $2,200.
This bullish view