Bitcoin (BTC) sought to end the week above $23,000 into the Feb. 26 close as concerns heightened over stubborn resistance. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reaching $23,318 on the day, up $600 from its weekend lows. The latest move marked a modest comeback after a grim week for risk assets which saw United States equities suffer thanks to above-expected inflation data.
Despite that, Bitcoin still remained below levels flagged by analysts as important to reclaim before the end of the month. Only isolated voices remained optimistic, these including popular trader Kaleo, who maintained that $30,000 remained a BTC price “magnet.” Kaleo tweeted a chart showing that $30K was still a magnet. Crypto trader Altcoin Sherpa meanwhile offered a reference period for hitting the $30,000 mark — “4-6 weeks.” Fellow trader and analyst Mags continued in part of a further summary that “$BTC is still in a transition phase from bear -> bull , up only begins once the neckline is broke!”
Bloomberg analyst Mike McGlone voiced misgivings about bulls’ ability to overcome the $25,000 resistance zone. McGlone tweeted a chart showing that “headwinds remain strong; markets have bounced – ‘Don’t fight the Fed’ was the dominant headwind for markets in 2022, and remains so in 1Q.” He added that “Bitcoin $25,000 resistance may prove significant for all risk assets.” The research itself predicted that “the more tactically orientated are likely to focus on responsive selling” when it comes to BTC/USD, while it “may be a while before buy-and-hold types gain the upper hand.”
The week prior, hopes remained high that $25,000 would not pose a major hurdle and that BTC/USD would be able to dispatch it without too much effort. In the event, however, the magnitude of the task became apparent — in addition to asks on exchange order books, key moving averages (MAs) lay above, notably Bitcoin’s 50-week and 200-week trend lines. The declining 50-week MA itself led McGlone to conclude that “the trend remains downward.”
As Bitcoin’s price continues to remain below the important levels flagged by analysts, traders and investors remain divided on whether the cryptocurrency will break out and reach the $30,000 mark. Optimistic traders such as Kaleo and Altcoin Sherpa remain confident that Bitcoin will reach $30,000 within the next 4-6 weeks. On the other hand, Bloomberg analyst Mike McGlone has voiced his misgivings about bulls’ ability to overcome the $25,000 resistance zone.
The research itself predicted that “the more tactically orientated are likely to focus on responsive selling” when it comes to BTC/USD, while it “may be a while before buy-and-hold types gain the upper hand.” McGlone’s chart showed that the “headwinds remain strong; markets have bounced – ‘Don’t fight the Fed’ was the dominant headwind for markets in 2022, and remains so in 1Q.” He added that “Bitcoin $25,000 resistance may prove significant for all risk assets.”
The current outlook for Bitcoin remains uncertain as traders and investors wait to see if the cryptocurrency can break out and reach the $30,000 mark. If Bitcoin is able to break out, it could have a positive effect on the entire cryptocurrency market. However, if Bitcoin is unable to break out, it could lead to a prolonged period of bearishness in the market.
In the meantime, traders and investors should remain vigilant and continue to monitor the market for any signs of a breakout. As Bitcoin’s price remains below the important levels flagged by analysts, traders and investors should remain aware that there is still a chance for a prolonged bearish period in the market. Despite the uncertain outlook, traders and investors should continue to keep an eye on the market and watch for any signs of a breakout.
