Bitcoin (BTC) leaves traders guessing as the future of the bull market hinges on the last week of February.
In multiple tweets on Feb. 17, popular trader and analyst Rekt Capital signaled crucial resistance battles on BTC/USD across multiple time frames.
The price of Bitcoin corresponds to a downtrend in the bear market
Bitcoin hit new six-month highs this week as the final innings of the 2023 recovery kept the bull-bear debate going.
After a consolidating start to the month, February has become a calculation point for Bitcoin’s price strength. Gains were harder to lock in than in January, when BTC/USD rose nearly 40%.
For Rekt Capital, now is the time to pay attention – be it daily, weekly or even monthly time frames.
The weekly chart represents arguably the biggest battle in the aftermath of the 2022 bear market. Bitcoin is currently trying to beat an area of resistance it failed to conquer last August, so far without success.
“Ultimately, a weekly close above this key area is what BTC needs to achieve to break through this confluent area of resistance to continue moving higher,” Rekt Capital wrote as part of a weekly chart update.
The picture is complicated thanks to two other major resistance trendlines above us, in the form of the 50-week and 200-week moving averages (MAs).
As Cointelegraph reported, these have formed their very first “death cross” – a potential nail in the coffin for those hoping for a new bull market to begin.
On monthly installments, an equally tense situation develops. Again, BTC/USD is “very close to breaking the macro downtrend,” says Rekt Capital.
The upcoming monthly close will be the deciding factor as continued strength could see Bitcoin in early March outside a falling trendline since the all-time highs of November 2021.
While this would be an important event, there are already certain signs to suggest that it can become reality. Bitcoin’s Relative Strength Index (RSI), previously at an all-time low, “has already confirmed another Bull Trend.”
BTC Price Analysis: Whales Target “Bull Market Maxis”
Closer to home, intraday activity remains tantalizingly opaque as Bitcoin bulls cling to some of the positive side of the week.
Related: Bitcoin metric prints ‘mother of all BTC bullish signals’ for 4th time ever
Nevertheless, two trips above USD 25,000 failed to trigger a resistance reversal and at the time of writing, BTC/USD was trading near USD 24,500, data from Cointelegraph Markets Pro and TradingView showed.
While Rekt is Capital to celebrate a confirmed outbreak, others continue to fear the entire episode is the result of manipulation by market whales.
Analyzing the order book activity on Binance and monitoring material indicators from sources seemed to leave no doubt about the spurious nature of the current price “strength”.
Whales have taken bidding support to the next level, creating the illusion of a “bull market breakout”.
“We already have 2 rejections so if they get it it’s a bonus”, Material Indicators wrote on the twin moves above $25,000.
“IMO, the goal was to increase distribution reach and decrease demand liquidity to bull market maxis.”
An accompanying order book chart captured the action, along with whale volumes declining as the spot price rose — a phenomenon Material Indicators recently dubbed “whale divergence.”
The views, thoughts and opinions expressed here are those of the authors only and do not necessarily reflect or represent the views and opinions of Cointelegraph.