While the month of January proved to be quite a volatile month for Bitcoin, February has been much more muted. However, there are some indications that the market is gearing up for action.
For instance, the 4-hour chart is showing a nice Head & Shoulders formation. The right shoulder is a little higher than the left one, but the basic pattern is still there.
The 4-hour chart is also showing that the trading channel – which the market has been bouncing around in since the middle of January – is gradually curving upwards. Unless price plunges all the way down to $373, the curvature of this trading channel seem to be suggesting that market bias is shifting to the bullish side.
There is also one important pivot zone that has to be broken before the market can rally. Of course I am talking about the pivot at $385.50, which is clearly visible on the 30-minute chart. This price level has acted as resistance on three occasions since the 4th of February, and also three times as support. This is a pivot level that the market needs to break before any serious rally can take place.
If you are an active trader, you may want to mark $376.50 on your charts too. This area has been respected by the market a few times in the past couple of days.
Disclaimer: This is not trading/investment advice!
Image Source: 1
Chart source: https://www.okcoin.com
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