Bitcoin (BTC) kept traders guessing as the future of the bull market hinged on the last week of February.
In a series of tweets on February 17, popular trader and analyst Rekt Capital signaled an important resistance battle in BTC/USD on multiple time frames.
Bitcoin price is down with bear market downtrend
Bitcoin hit a new six-month high this week as the latest round of the 2023 recovery fueled the bullish debate.
After the beginning of consolidation for the month, February has become a point of calculation for the strength of the price of Bitcoin. Gains have been harder to cement than in January, when BTC/USD finished up almost 40%.
For Rekt Capital, now is the time to pay attention – whether trading daily, weekly or even monthly.
The weekly chart may show the biggest struggle after the bear market of 2022. Bitcoin is currently trying to overcome the resistance area that it failed to conquer last August, so far without success.
“Ultimately, a Weekly Close above this key area is what BTC needs to achieve to break this confluent area to continue,” Rekt Capital write as part of the update on the weekly chart.
The picture is complicated by two other major resistance trend lines above, in the form of the 50-week and 200-week moving averages (MA).
As reported by Cointelegraph, this has formed the first “death cross” – a potential nail in the coffin for those who hope that a new bull market will begin.
In the monthly time frame, an equally tense situation develops. Here too, BTC/USD is “very close to breaking the Macro Downtrend,” Rekt Capital said.
The upcoming monthly close will be the deciding factor, as continued strength could see Bitcoin from March outside downward trend line from the November 2021 high.
While this will be an important event, certain signs are already there suggest that can be a reality. Bitcoin’s relative strength index (RSI), which was previously at its lowest, “has confirmed a new Bull Trend.”
BTC price analysis: Pope targets “bull market max”
Closer to home, intraday activity remains unclear as Bitcoin bulls cling to the rising part of the week.
Related: Bitcoin metrics print ‘mother of all BTC bullish signals’ for 4th time
Both trips above $25,000, but failed to generate support resistance, and at the time of writing, BTC/USD is trading around $24,500, data from Cointelegraph Markets Pro and TradingView show.
When Rekt Capital is celebrate breakout confirmed, others remain afraid that the whole episode has been the result of manipulation by market whales.
Analyzing the activity of the order book on Binance, monitoring the resource Materials Indicator, there seems to be no doubt about the nature of the false “strength” of the price.
Pope has moved bid support higher, creating the illusion of a “bull market breakout.”
“We already have 2 rejections so if they ask for it, it’s a bonus,” Material Indicator write about twin movements above $25,000.
“IMO, the goal is to increase distribution reach and put liquidity into the market to the maximum.”
The attached order book chart captures that action, along with whale volume falling as spot prices rise — a phenomenon Material Indicators recently called the “whale divergence.”
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