<

Bitcoin price ended February with a sharp rebound, which extended into March, albeit at a slower pace

Bitcoin, Ether, and other significant cryptocurrencies continued their momentum from Monday even as Russia escalated its control of Ukraine. The BTC buyers could remain active at lower support levels, particularly at $40,000. At the time of writing, Bitcoin price is changing hands at $43,973.

bitcoin-price-ended-february-with-a-sharp-rebound-which-extended-into-march-albeit-at-a-slower-pace

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price decouples from stocks ahead of seasonally weak March

It appears that bearish sentiment is starting to fade despite the ongoing geopolitical risk. For example, the bitcoin Fear & Greed Index, which measures the mood among crypto traders, rose from “extreme fear” territory and is back around neutral levels. At press time, the index shows about 52, representing the “Neutral” level.

bitcoin-price-ended-february-with-a-sharp-rebound-which-extended-into-march-albeit-at-a-slower-pace[1]

Crypto Fear & Greed Index as of February 2 | Source: Alternative.me

Meanwhile, Bitcoin’s average trading volume across spot exchanges reached the highest level since December on Tuesday, which could be an early sign of capitulation among sellers. The ratio of buy volume relative to selling volume also ticked higher over the past week, suggesting renewed bullish activity. Still, other market indicators are neutral as some buyers remain on the sidelines.

Bitcoin rallied 13% over the past week as bearish sentiment waned. The cryptocurrency, however, faces immediate resistance at $44,000 to $46,000, which could stall the price recovery over the short term.

The relative strength index (RSI) on the four-hour chart is overbought, similar to what occurred in early February, which preceded a pullback in price. However, this time, there has been a significant loss of downside momentum, which means buyers could remain active at lower support.

For now, Bitcoin is stuck in a range of between $37,000 and $46,000, pointing to a potential reversal of a three-month-long downtrend. That means buying volume will need to increase on pullbacks to cause a shift in trends.

February was a volatile month in crypto markets, triggered by macroeconomic and geopolitical risks. Still, some clear winners, such as XRP, outperformed the CoinDesk 20 crypto-list with a 29% return.

Ethereum Classic (ETC) and Bitcoin Cash (BCH), both spin-offs of their respective blockchains, also posted strong gains in February. Meanwhile, bitcoin experienced a 12% gain, driven by the sharp price recovery over the past week.

Other alternative cryptocurrencies such as Chainlink (LINK), Algorand (ALGO), and Cardano (ADA) declined more than 8% in February. Bitcoin’s outperformance relative to altcoins suggests a lower appetite for risk among crypto investors.

The overall cryptocurrency market cap stands at $1.930 trillion, and Bitcoin Dominance is 43.3%.

Sign up for a Binance account here (Discount 10% trading fees): https://accounts.binance.com/en/register?ref=29171587

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like

LATEST NEWS

LASTEST NEWS