Week Ahead: Bitcoin threatens a drop, altcoins in shambles
With Bitcoin price action losing volatility, markets have turned chaotic again, some believe a crash is due for BTC, a short-term reset, if you will. Others believe that the ongoing consolidation will lead to a swift move to the upside, preferably to the next key level at $60,000. This speculative dichotomy has some shorting altcoins and others buying the dips. In this article, let’s explore what can happen next with BTC, along with the usual “What to expect next week?”
Also read: This week’s nearly $250 million token unlock events: YGG, AGIX, SUI, OP, PRIME, MANTA DYDX, ZETA
Bitcoin price at key hurdles
Bitcoin price trades between the $52,062 weekly resistance level and the $45,156 support level after rallying 37% in the last 28 days. Due to the explosive nature of this move, a retracement seems due. Moreover, the previous week’s forecast also notes a bearish price fractal that postulates a potential liquidity event likely to happen in the next two weeks.
Additionally, the 12-hour chart posted below showcases a bearish divergence, where the Bitcoin price has produced higher highs, but the Relative Strength Index (RSI) and the Awesome Oscillator (AO) have produced lower highs.
Furthermore, the Point of Control (POC), which is the highest traded volume in the last 28 days is $51,716, which is serving as a resistance level.
This setup also forecasts a potential correction to the key levels:
- Weekly imbalance’s upper limit at $47,712.
- Weekly support level at $45,156.
BTC/USDT 12-hour chart
In addition to the 12-hour chart, the bearish divergence can be found on the weekly chart as well, which adds to the overall correction thesis.
BTC/USDT 1-week chart
What to expect next week?
February 26
- Mina Protocol - Last step before Berkeley mainnet upgrade
- Ronin - Network upgrade
- Cardano - Charles Hoskinson fireside chat
- Aptos - Chinese AMA
February 27
- Zilliqa - CEO talks GameFi
February 28
- ICON - ICX Balanced Enshrinement
February 29
- Polmesh - POLYX upgrade bridge ends
March 1
- Kadena - SpireKey launch
Token Unlocks this week
Between February 26 and March 3, five altcoins will unlock nearly $315 million tokens.
- dYdX Protocol (DYDX) - $98m - 11.09% of circulating supply
- Optimism (OP) - $88.42m - 2.52% of circulating supply
- Sui (SUI) - $65.26m - 3.31% of circulating supply
- Echelon Prime (PRIME) - $20.56m - 4.9% of circulating supply
- ZetaChain (ZETA) - $13.18m - 2.24% of circulating supply
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
