Bitcoin Still Correcting

By Dmitriy Gurkovskiy, Chief Analyst at RoboForex

On Tuesday, February 23rd, the BTC keeps correcting, declining to 50,436 USD. It reached its peak of 57,640 USD on February 21st and has been declining since then.

On D1, the pair bounced off the resistance level and keeps declining. The aim of the pullback is 23.6% Fibo. The MACD histogram is positive, declining, which increases the chances for further correction. The signal lines of the indicator are also demonstrating an uptrend, which might enhance the correction before growth if a Black Cross forms.

On H4, the pair returned to the borders of the ascending channel. The Stochastic keeps moving near 80, increasing the chances for a correction. Judging by previous price movements, we can expect it to correct to 23.6% Fibo and go on with the ascending dynamics. The aim of the growth after the correction (like on the larger timeframe) is 62,000 USD.

Elon Musk changed the avatar of his Twitter account for an anime-style “portrait” of the BTC. He promised it would be just for a day; however, just a couple of days before he used to be skeptical about the growth of the leading cryptocurrency. Sometime earlier, he stated that the BTC was just a slightly less stupid way of storing liquidity than real money. This was totally unexpected: Elon Musk, whose opinion is extremely influential in capital markets, called Tesla’s investments in crypto reckless, going quite counter his own opinion.

We can admit that Musk is manipulating the market this way – earlier, we got to know about his affection towards the Dogecoin crypto. After Musk’s publications on Twitter, the Dogecoin growth noticeably sped up.

Last week, the capitalization of the flagship cryptocurrency got over 1 trillion USD for the first time in history.

Disclaimer

Any predictions contained herein are based on the author’s particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.