FXOpen
On February 14, a strong bullish impulse was recorded in the BTC/USD market, which pushed the price of bitcoin to the area above USD 50k.
The main driver of growth was the effect of the launch of a bitcoin ETF. More than a month has passed since this event, and according to media reports, the ETF has seen an influx of more than USD 7 billion. For example, BlackRock has about 125k bitcoins on its balance sheet to support its ETF fund.
Also adding to the positive mood among market participants is news about the benefits received by companies that invested in bitcoin: MicroStrategy, Block and others. Among the latest news is Reddit's decision to invest in bitcoin.
However, technical analysis of the BTC/USD chart shows alarming signs:
→ bitcoin price has slightly exceeded the upper limit of the larger ascending channel (shown in green), but how does it behave in tests? The upper border has changed its role from resistance to support (according to the classic technical analysis pattern), but rebounds from this support line quickly lose momentum. The price does not seem to have the energy (force of demand) to rise from the existing support level.
→ Bitcoin price dropped to the lower border of a smaller ascending channel (shown in blue) - a sign that the February positive is running out.
Given the signs of weakening demand, it is possible that we will see an attempt by the bears to take the initiative and return the price of bitcoin below the psychological level of 50k per coin.
FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.
*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Latest articles
Coinbase (COIN) Stock Price Holds at Key Support Level
On Thursday, stock market traders were concerned about the sharp drop in Coinbase shares, listed on the Nasdaq, which fell by 9%. This was triggered by rumours that the Chicago-based CME Group is planning to launch cryptocurrency trading, posing a
What Is the Gold/Silver Ratio, and How Do Traders Use It?
The gold/silver ratio, which measures the relative value of these two precious metals, is a vital tool for commodity traders. Understanding this relationship helps identify market trends and trading opportunities. This article explores how to calculate, analyse, and trade
Weekly Market Wrap With Gary Thomson: S&P500, US Dollar, Gold Price, PEP Stocks
Get he latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. Read the latest news