Bitcoin started on a bad note this week with the price failing to sustain itself after falling during the February 22nd trading session. Experts blamed the fall on impatient traders who closed their positions before the bitcoin price was able to build the necessary momentum.

As we predicted yesterday, the 232-234 area received strong support and kept the price from testing the new bottom of around 227.

As sellers disappeared, traders started entering the market, subsequently initiating a slow rally towards the next resistance level.

The BTC/USD opened right near the oversold threshold around 235 and continued to dip in the next few hours. For a brief time, the pair remained below the lower Bollinger band and was soon followed by a price correction. The upward movement however influenced other traders to enter the market, probably to make near-term profits. The overall movement, at press time, is consistently reaching higher lows.

What to expect today?

The slow uptrend is inspiring and a volatile rally is hopeful but unlikely. The market has formed a new consolidation range after breaking away from the previous support level around 210.

As per the technical indicators on the 4H Bitfinex chart, support near the 234 mark has been formed and the price is validating 240 as its next target. As you can see on the chart above, the price is still trending below the 50H MA, while the RSI continues to remain near 40 – with its head towards the north. The near-term market sentiment is clearly bearish.

Tip: It is recommended that traders go short if they notice slow momentum near or before 240 mark.

Conclusion (On Daily Charts)

Current Mood: Bullish

Moving Averages: Buy (8 Buy 4 Sell)

Technical Indicators: Buy (4 Buy 0 Sell 7 Neutral)