February brings the rain, thaws the frozen lake again
4 min read

February brings the rain, thaws the frozen lake again

Cryptic ball: just some scenarios.

February is here! The monthly close wasn't as bad as many expected, but it doesn't exactly scream of a bottom. Still, this was the third red month in a row, just like what we experienced between April and June, before resuming the journey to a new all-time high in July. Unfortunately, $69k wasn't as exciting as it could potentially be and, together with the macro complications, we got where we are.

As always, what's next? The weekly chart looks good and makes me confident we're going to test $40k to $42k this week and get that higher high bulls need for the bounce to play out. However, this morning, UTC time, bitcoin faced some rejection around $39k. For now, it didn't harm the trend, but the daily chart is showing some signs of exhaustion, given the declining volume and long wicks. It could be because of Chinese New Year's diminished activity, or because bulls are tired.

Note also that the original orange coin is testing the 20-day moving average (in green), which has been acting as resistance since November 17th, bar that fake Christmas breakout. If bulls manage to conquer it then longs will rejoice - at least for a while. If not, and as explained yesterday, it's all about what happens on the wave down: bitcoin must find support around $36.7k or else bears will invert the trend and spread fear - although I must repeat I believe we first see some green.

Zooming further into the 4-hour chart, we can see BTC is also fighting the key 100-period moving average (in red) - which acted as resistance since December 28th, after it became clear Santa wasn't saving the holidays. Again, if bulls overcome it, expect a squeeze up to $41k. If not, let's hope $36.7k holds. In any case, bears are about to fight hard and my ability to provide scenarios without further development is about to end. So place your bets and enjoy the show!

Visual block: just some flows.

At least institutions aren't selling now, even if inflows are mild. Let's just hope fear doesn't resume later in February, as explained last week. Because if bears manage to break the $36.7k support we're going to $30k. For now, it seems the market is bidding at that level, and I also believe this is not the time to be bearish, as we're closer to support than resistance.

Three things: just some events.

Tweet tip: just some correlation.

I haven't talked much about the stock market this week, but I hope you remember the correlation still stands. Let's see for how long can tech stonks bounce.

Meme moment: just some humour.

Don't draw lines, but remember most bots work with averages.

B21 App: just some clicks.

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Our newsletter offers opinions and insights from analysts in the cryptoasset space. It is not intended to be investment advice, and should not be treated as such. You must not rely on its information as an alternative to financial advice from a qualified professional. Without prejudice, we do not undertake or guarantee that its information is correct, complete or non-misleading; or that the use of guidance in the report will lead to any particular outcome or result.