Bitcoin Technical Analysis Projection Review Before The Halving
By Rubika Ventures on The Capital
The month of February ended, hot, but it ended. Therefore, in the next article, we will try to project the reality of the price of Bitcoin before Halving.
With the previous words, and in the next lines of text, you will find the technical analysis for the closing of the month of February, the weekly analysis, and the daily analysis. We will also review the total market capitalization, some news, and market dominance.
Completely Confusing Traders
But before moving on to the technical part, we want to say one thing: the air that is breathed into the market for this new month that begins is an air of confusion.
Many market players, at this time, do not know what to do. Sell or buy? Literally, the picture says it all. Never in history have we documented this market, would we believe that a virus (Coronavirus) would affect most financial markets.
Before the game, it was about money laundering and manipulation; now another game card collapsed the bullish sentiment of the cryptocurrency market overnight. Panic and fear returned again. Emerging world health makes its move.
For now and for these emergency cases, all we have to do is study. Any false movement could result in the loss of a lot of money.
Capital Going A Few
We do not want to be pessimistic, but the negative 10% of market capitalization happened as we had predicted. For today and by the time this article was written, the total market capitalization begins in March around USD $ 230 billion. If we calculate from the last discharge, that capital outflow represents much more than 10% negative.
At the end of February, we recognize that an important point of inflection for the total market capitalization is to consolidate well above USD $300 billion. The above, for us then, has already become a psychological market number.
Where do we want to go? The answer is simple: the cryptocurrency market only enters into a real bullish feeling when it exceeds that psychological number. Below that, we will continue to be in the bear market.
Closure That Left Everyone Open A Mouth
We closed the month of February forming an inverted hammer in bearish direction and almost touching the EMA9. For the price of Bitcoin within the monthly chart, it shows no signs of reversal.
For the possible side, we could have a month of March looking for prices very close to USD $9877, where the Ichimoku Cloud shows a very strong resistance and a divergent and neutral oscillation zone in the sense of both market players.
On the negative side, we may be breaking the EMA9, the 61% Fibonacci retraction line, well below the USD $7971, alerting many of what would be the beginning of a bearish market until it reaches USD support $7110 approximately and well below the EMA21.
For us, an exact start of the bull run before the Bitcoin Halving is at the exact point of USD $5550, making a touch of the EMA50. The latter refers to the case whereby the selling force takes the market for this new month.
Remember, there are less than two months left for the long-awaited important event for Bitcoin and until that date, everything can happen. But for now, other indicators show a point of neutrality in relation to supply and demand.
Support and important stronger support point in case of an extreme price drop before the halving is around USD $4823. Good Luck And Don’t Stay Surprised!
A Week That Went To The Dark Side
The first week of March begins with the price of Bitcoin around USD $ 8524 and with a close of the last week of February very close to one of the main downward trend lines.
Currently, and in the weekly chart, the price tries to stay above the EMA50, which if we remember it, is a very important support for the entire market. The truth is that this big red candle only means one thing: many went to the dark side and went crazy because of the global pandemic we have now. We would say in technical terms: political and economic interests.
Strategically speaking, to consider the opening of a long position we must wait for the breaking of the EMA21 along with the EMA9 and at the exact point of USD $8620 and USD $8820, more or less.
In the opposite case, and under the possession of the market in favor of the bears, the breaking of the EMA50 can trigger the price to be projected towards the next support that would be the EMA100, very close to the point USD $7322 approximately. The above would add the breakdown of the main trend line of low drawn.
A Wave That Can End
For the daily graphic time, we are confirming a possible formation of the Elliot WXYXZ pattern and in accordance with what Wyckoff’s theory has been showing since the past analyzes that we have been delivering and within a high channel. That on the positive side.
On the negative side, we are drawing a trend line of high or auxiliary angle of Gann to show that we are currently at a critical point with the price around USD $8541 approximately. At this point, we still don’t trust that the correction wave is over.
However, the MACD indicator is beginning to show signs of reversal in favor of bears and with RSI with 42, in the next few days, Bitcoin could attract curious investors who appear out of nowhere with a thunderous purchase volume.
Long positions at this point is presenting a somewhat risk. Short positions can generate settlement. Now, you can understand why traders are a bit confused? Happy Halving for you!
Binance Opening Options
With all this previous analysis, we want to put a serious question here: in addition to the Coronavirus, will it be that the entire market remains because Binance will soon open the options market?
The only thing we can say about this conspiracy theory that stands out for this week is that Binance is preparing to launch options trading in late Q2 or early Q3.
Also two sources with knowledge of the matter detailed the ongoing process to The Block, with one source saying that Binance has been meeting with relevant market participants to kick off the initiative in late Q2 or early Q3 as explains theblockcrypto.
See you in the next review! With love 💛 Rubika Ventures Team!
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Remember, investment in cryptocurrencies or other assets has a moderate risk, so it is important to have a detailed study of the possible scenarios before placing your money at risk.