BTC Price Must Close February Above 50-Month Trendline — Analysis
Bitcoin (BTC) met a key trendline showdown on February 28 as the month-end finally arrived.
Bitcoin ‘Not Feeling Bullish’ Into February
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circling an area around $23,500 at the Wall Street open.
With US stocks flat and the US dollar avoiding a return to strength, eyes were on Bitcoin to preserve its gains through last-minute volatility.
“Would like to see more Bitcoin bid liquidity into the active trading area to increase chances of closing the monthly candle above the 50-month moving average,” resource material indicators monitor wrote in one of several Twitter posts on the day.
“Volume has been weak, so at this stage it doesn’t feel bullish.”
An accompanying chart showed BTC/USD bid and sell levels in the Binance order book.
Material indicators noted that the month of March held an important macroeconomic event in the form of the Federal Reserve’s next rate hike decision. This was to happen on March 22 with the permission of the Federal Open Market Committee (FOMC).
“Close above 50-month MA = Bullish Closer below $23,128 = Red and an invitation to retest key support levels,” part of another post continued.
“Close between 50-month MA – $23,128 = Green monthly proximity and range to next rate hike around March 22 FOMC meeting.”
Scott Melker, the trader and podcast host known as “The Wolf Of All Streets,” meanwhile demanded more of the spot price, calling the area just above “no man’s land.”
“Bullish breaker (red zone) holds as support at the moment. Still in no man’s land between $21,473 and $25,212,” he commented on a chart showing target levels.
Completely silent on the macro landscape
A lack of direction in the US dollar, meanwhile, removed a potential headache for risk-asset bulls on the day.
Related: Bitcoin exchanges now own 16% less BTC than oldest hodlers
The US Dollar Index (DXY) rose to multi-day lows as it failed to recover after giving up gains from the previous week.
In US stocks, the S&P 500 was trading down 0.2% at the time of writing, while the Nasdaq Composite Index was flat on the day.
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
