After hitting new records last week at the $ 58,335 level, Bitcoin now materializes the worst of the fears of those who invest in it: its high exposure to volatility. At this time of writing it is trading at $ 46,600 below the 21 SMA and above the 200 EMA.
Bitcoin is trading below the psychological level of $ 50,000, which is a sign that there could be downward pressure if the cryptocurrency breaks the 200 EMA on 4-hour charts, and it could hit lows of $ 37,500.
We can see a downtrend channel in 4-hour charts, this means that there could be some downward pressure for a short term, we only expect the $ 43,000 zone to break for a drop to 30,000 levels.
For now our recommendation is to buy when it technically bounces above the 200 EMA and sell below the 21 SMA, levels that we have plotted on the chart.
Support and Resistance Levels For February 26 - 28, 2021
Resistance (1) $49,181
Resistance (2) $50,722
Resistance (3) $53,571
Support (1) $42,925
Support (2) $41,133
Support (3) $40,146
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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