Bitcoin prediction this week February 24 to March 1: the coin might extend its stay inside the range for a few more days
With the halving around the corner, should the bulls buy the current dip?
Bitcoin’s price plummeted on February 19 from a high of $10,311.85 to a low of $9,250. However, the positive thing is that no follow up selling was seen after that. The bulls used the sharp fall to buy, which shows that the sentiment is to buy the dip rather than sell the rally.
Binance CEO Changpeng Zhao, in an interview to BlockTV, said that according to him, the Bitcoin halving has not yet been priced in. With the block rewards due to halve in May, the cost of mining Bitcoin is going to increase. Therefore, he believes that psychologically, the miners would not be willing to sell Bitcoin below their cost of production.
Additionally, halving will reduce the supply of Bitcoin. However, over the past few months, several new users have entered the crypto space, which is likely to keep the demand side buoyant. While these points are positive, Zhao said that psychological round figures are known to act as hurdles. Hence, $10,000 might remain a roadblock for a few days.
With halving around the corner, should the bulls buy the current dip or does the short-term picture point to a deeper correction. Let us do the Bitcoin price prediction for this week to find out.
Bitcoin price prediction chart: weekly
The bulls purchased the pullback to $9,250 last week, which shows demand at lower levels. While the bulls are providing support in the $9,000-$9,500 zone, the bears are defending the overhead resistance at $10,550. This suggests that Bitcoin is likely to remain range-bound for a few days.
If the bulls can push and sustain the price above $10,550, it is likely to attract buying by the traders as they will fear missing out on the trade. The first target to watch out for is $12,000 and above it $13,839.90.
Conversely, if the bears sink the price below $9,000, the sentiment will turn negative and a drop to the $8,000 to $7,853.95 support zone is possible.
The Bitcoin analysis of the weekly chart suggests a consolidation for the next few days. Let us do the Bitcoin price analysis of the daily chart to see if we find any bullish or bearish setups for the short-term.
BTC to USD chart: daily
Bitcoin has been trading close to the 20-day EMA for the past few days. The 20-day EMA has flattened out and the RSI has also dropped close to the midpoint. This suggests a balance between the buyers and sellers.
The BTC to USD pair might remain range-bound between $9,000 and $10,550 for the next few days. The 50-day SMA is at $9,171, hence, we anticipate the bulls to defend the $9,000-$9,171 levels aggressively. On the upside, $10,550 remains the hurdle that needs to be crossed for the uptrend to resume.
Contrary to our assumption, if the bears sink the price below $9,000, it might result in long liquidation that can drag the price to $8,000.
The bitcoin price analysis of the daily chart also points to a possible range-bound action. How can the traders use this analysis to their advantage?
Bitcoin price this week February 24 to March 01: How to trade it
If the price bounces off the support at $9,000, the traders can buy keeping a close stop loss at $8,900. The target objective of this trade is a move back to $10,550. The traders should avoid buying on the way down and wait for the price to rebound off the support level before buying.
Others, who are holding long positions from lower levels can keep their stop loss at $8,800. Long positions should be avoided if the price slips and sustains below $9,000.
FURTHER READING: Bitcoin halving: could it reach $170K per coin?
FURTHER READING: Anticipation grows ahead of Bitcoin halving