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Bitcoin and Ethereum Market Analysis – 25.02.2021

The cryptocurrency market had a sell-off that saw the total market capitalization drop by more than $400 billion as Bitcoin’s (BTC) price briefly fell below $45,000.

After an impressive run to a new all-time high of $58,342 in the previous week, Bitcoin (BTC) seems to have entered a transitory consolidation phase, attempting to flip the $50,000 level back to support. BTC price dropped by over $13,000 from $58,342 to under $45,240, a significant correction of more then 20%. The periods of consolidation and pullbacks to retest underlying support are very important in sustaining the strength of the uptrend.

Institutional investors continue to pour money into the crypto sector even with the current dip below $45,000. These purchases by institutional investors show they are bullish on the long-term prospects of Bitcoin and believe that it is a good buy near $50,000.

This pullback, also caused other cryptocurrencies to fall alongside Bitcoin, resulting in Bitcoin’s market dominance rising as a result.

BTC daily chart, shows that A pull back to 20-day EMA and the relative strength index (RSI) just above the midpoint suggest BTC, still to be bullish. We don’t have any negative MA crossing .The EMA 8 and the green candles, everything is still moving in the right direction.

The critical indicator to watch is the 50.1k support/resistance level that will determine the bulls’ market position.

Fig.1.Bitcoin: The critical area support/resistance to watch, is the 50.1k level.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live

From BTC weekly chart, the critical indicator to watch is the EMA 34, 50.1k which should hold Bitcoin’s price from dropping further.

Fig2. Bitcoin: The critical indicator to watch is the EMA 34 area, 50.1k. Source: bitcoin.live

I see the bulls in control here and treat every dip as a buying opportunity.

Ethereum
ETH had a flash dip the last few days back to key horizontal support. This one is a buy the dip situation too.

Ether (ETH) fell below the support line of the ascending BB and the 50-day SMA ($1,487) on Feb. 23, managed to keep the price inside the BB.

The bulls are currently attempting to push the price above the 20-day EMA ($1,728). If they succeed, the ETH/USD pair may again try to rise to the resistance line of the range.

Fig.3 Ethereum: Move your stop-loss to $1,487 support area. Source: bitcoin.live

 

Let’s keep an eye on EMA 50 and I see the bulls regaining.

🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service


🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service