Bitcoin shows weakness
The daily timeframe shows that BTC has been rising since January 23. In 28 days, the coin rose in price by 40%, reaching a maximum of $53,015 on February 20. This was the highest price since 2021.
Although Bitcoin has pulled back slightly since then, it is still trading above $51,000. However, as a result of the rapid rise below the current price, there was no horizontal support left.
Source: TradingView
Although price action is positive, the daily Relative Strength Index (RSI) is giving negative signals. It formed a bearish divergence (green) and dropped below 70 (red).
What analysts say
Cryptocurrency traders and analysts on Platform X are bullish on Bitcoin's prospects.
CryptoMichNL suggests that the price will reach $58,000 before the halving, followed by a significant correction:
“I don’t know if Bitcoin will correct in the short term. I think this rally will peak in the $54-58k range. and will trigger a significant correction to $40-42 thousand. after the halving.”
BTC/USDT weekly chart. Source: X
Mesawine1 believes that the currency is completing a short-term correction, after which a significant upward movement will begin.
BTC Forecast: Is the Trend Still Bullish?
The 6-hour timeframe gives a more bullish outlook than the daily chart. Here, the price of Bitcoin, after reaching the February high, declines inside a descending parallel channel. Such channels usually contain corrective movements. Accordingly, the most likely scenario is a bullish breakout from it.
Additionally, during this period, the price of BTC was in the range between $51,300 and $52,400. Every time the price deviated below the low of the range (green icons), it bounced off the channel support line and returned to the range. The coin is currently trading at the top of the channel. In case of a bullish breakout from it, the price could rise by 6% to the next resistance at $54,300.
Source: TradingView
Despite this bullish outlook, a bearish breakout from the channel could see BTC fall 8% to horizontal support and the $47,400 Fibonacci level.
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