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Bitcoin and Ethereum Market Analysis – 27.02.2021

Bitcoin is still holding-on even though, it remains in the range-bound with most Altcoins. The possible consolidation in the near term may last more than expected as Bitcoin (BTC) fails to recapture its initial support level -$52,040.95 and traders who were expecting a quick resumption of the uptrend may have been caught off guard by the range-bound movement.

This is the beautiful cyclical nature of demand and supply. After a day of intensifying sell pressure, Bitcoin price dropped below $46,000, suggesting that,the price could retest the 41,959.63 support level.

Every bull market witnesses periodic pullbacks, where the weaker hands sell anticipating a top and the stronger hands accumulate for the long term. The tug of war is currently going on between the bulls and the bears.
While Bitcoin’s bull market is trying to fend-off the bears, the Altcoins indicator – Ethereum couldn’t sustain the momentum and propel the price above the 20-day EMA-$1,686.

BTC daily chart shows, that bulls attempted to resume the up-trend on Feb. 26, but could not sustain the higher levels. After getting to day-30 cycle high, BTC reversed direction and broke below the 20-day EMA ($48,159), which increased selling pressure.

However, the long tail on today’s candlestick shows that bears are not able to sustain the price below the 20-day EMA. This suggests traders are buying on dips. The 20-day EMA and the range-bound movement suggest a possible consolidation in the near term. The support of the mentioned above range could be at $41,959.63, which is just above the 50-day MA ($40,914).

Fig.1. Bitcoin: The 65-day cycle suggests more consolidations in the near term before the expected uptrend.
Paid Content by Peter Brendt and his partners at bitcoin.live

I don’t see the bears sinking the price below the 50-day MA, as the bulls are ready to propel the price above $52,040.95, a retest of $58,341.03 may be on the cards pretty soon.

Looking at the BTC weekly chart, we see a 20-week MA rising after a consolidation in March 2017 and 2018. The same scenario is likely to play out in 2021. Historical data often provides insight into how market cycles work.

Fig.2. Bitcoin: A 20-week MA rising after a consolidation in March 2017.Source: bitcoin.live

In that regard, the critical indicator to watch is the 20-week MA, which should hold Bitcoin’s price from dropping further.

Ethereum

The Ethereum chart shows that, the price could not rise above the 20-day EMA ($1,686) on Feb. 26, which suggests the bears are defending this level. The biggest Altcoins turned south on Feb. 25 and fell to the 50-day MA.

Although the price dipped below the 50-day MA today, the bears could not break the Feb. 24 intraday low at $1,350. This shows a lack of selling pressure at lower levels.

Fig.3 Ethereum: The bulls getting the price above 50-day MA, suggesting bullish. Source: bitcoin.live

 

The bulls have pushed the price back above the 50-day MA. If they can sustain the momentum and propel the price above the 20-day EMA, it could enhance the prospects of retesting $2,000.

🔴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