BTC price needs to close February above 50-month trend line — Analysis
2023.02.28 12:30
Bitcoin (BTC) faced a showdown with a key trend line on Feb. 28 as the monthly close finally arrived.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Bitcoin “doesn’t feel bullish” into February close
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circling an area around $23,500 at the Wall Street open.
With United States stocks flat and the U.S. dollar avoiding a return to strength, eyes were on Bitcoin to preserve its gains through last-minute volatility.
“Would like to see more Bitcoin bid liquidity enter the active trading range to increase the chances of closing the Monthly candle above the 50-Month Moving Average,” monitoring resource Material Indicators wrote in one of several Twitter posts on the day.
“Volume has been weak, so at this stage doesn’t feel bullish.”
An accompanying chart showed BTC/USD bid and ask levels on the Binance order book.
BTC/USD order book data (Binance). Source: Material Indicators/Twitter
Material Indicators noted that the month of March held a key macroeconomic event in the form of the Federal Reserve’s next decision on interest rate hikes. This was due on March 22 courtesy of the Federal Open Market Committee (FOMC).
“Close above the 50-Month MA = Bullish Close below $23,128 = Red and an invitation to retest key support levels,” part of another post continued.
“Close between the 50-Month MA – $23,128 = Green Monthly close and range to the next rate hike around the March 22nd FOMC meeting.”
BTC/USD 1-month candle chart (Bitstamp) with 50MA. Source: TradingView
Scott Melker, the trader and podcast host known as “The Wolf Of All Streets,” meanwhile, demanded more of spot price, calling the area immediately above “no man’s land.”
“Bullish breaker (red zone) holding as support at the moment. Still in no man’s land between $21,473 and $25,212,” he commented on a chart showing target levels.
BTC/USD annotated chart. Source: Scott Melker/Twitter
All quiet on the macro landscape
A lack of direction in the U.S. dollar, meanwhile, removed a potential headache for risk asset bulls on the day.
Related: Bitcoin exchanges now own 16% less BTC than the oldest hodlers
The U.S. Dollar Index (DXY) spiked to multi-day lows as it failed to mount a comeback after giving up gains from the week prior.
U.S. Dollar Index (DXY) 1-hour candle chart. Source: TradingView
On U.S. equities, the S&P 500 traded down 0.2% at the time of writing, while the Nasdaq Composite Index was stationary on the day.
