Crypto has mainly been a bearish conversation ever since Bitcoin hit a high of $69k in November last year. Most coins were in large downtrends and failing below any supports on the way down. However, in early February Bitcoin made a strong move up, gaining 11% on the day. That then set the groundwork for the price to stabilise.

Balance in price

The below image shows the Bitcoin price from the November highs to todays level. The price has managed to hold levels of $34k and has fluctuated within a range of $35k to $47.5k. Price will often find a balance before taking a further move in either direction. Right now, Bitcoin seems to be in that price balance, where buyers and sellers are even. Neither are more active leaving the price within this range.

Breakout or Breakdown

Another way we could look at the current price is looking into the channel. Price breaking above or below this channel would be an indication of the next major move. Could this be a bear flag which would trap long retail investors, only for big money to then be able to sell into the volume?

The current level just about held the bottom of the channel. For a bullish continuation, the price will need to rise off this level and then test $50k. For a bearish story, we would want to see this current balance over the past few days to fail and the price fall below $38k.

Opportunities

Wether you would be looking to trade it within this current channel/balance or wether you are looking for a larger move up or down, Bitcoin is offering some trading opportunities right now.

As for crypto as a sector of the market, Bitcoin will be decisive in the direction most coins will go. We recommend staying objective with any trades at the moment. No, it will not go to the moon, nor will it hit $0 in the near term. But it does remain an asset that can be traded off good technical setups. And right now, we see some good indications to keep an eye on.

If the price does fail, we could see $30k before any significant reversal signs are seen. On the other hand, if price manages to see more demand and rally up, $52k-53k would be good targets.

Please read our full disclaimers regarding the information published. The above is intended for informative purposes only and should not be taken as investment advice. Trading on leverage can result in losses larger than your initial deposit.

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