Analytics for beginners

Technical Analysis of BTC/USD for February 19, 2024

Technical Analysis of BTC/USD for February 19, 2024


2024-02-19 11:18:05

Author: Sebastian Seliga

#Trading #Crypto industry news #Bitcoin

Bitcoin bulls still push to the upside last week high ahead

Exploring recent developments in the crypto market, particularly Bitcoin, sheds light on its dynamics against the backdrop of traditional fiat currencies. Gary Gensler's remarks offer insights into the contrasting perspectives on cryptocurrencies and fiat, prompting a closer examination of Bitcoin's technical outlook and potential trading scenarios.

Key Takeaways:

  1. Gary Gensler's remarks highlight the ongoing debate surrounding Bitcoin's role in the financial landscape, emphasizing the distinction between cryptocurrencies and fiat currencies.
  2. Technical analysis reveals a bullish trend for BTC/USD, with key support and resistance levels guiding short-term price movements.
  3. Traders must consider both bullish and bearish scenarios, aligning their strategies with emerging market dynamics.


Crypto Industry Insights:In a recent tv interview, SEC Chairman Gary Gensler addressed the growing discourse surrounding Bitcoin's legitimacy and utility. While acknowledging Bitcoin's decentralized nature, Gensler underscored the fundamental differences between cryptocurrencies and traditional fiat currencies. He emphasized the widespread adoption and regulatory support enjoyed by fiat currencies, contrasting them with the decentralized structure of Bitcoin. Despite acknowledging Bitcoin's appeal, Gensler highlighted the importance of robust regulatory frameworks and central oversight in traditional financial systems.

Technical Analysis Overview:The BTC/USD pair continues its upward trajectory, setting a new yearly high amidst bullish momentum. With intraday support at $50,384 and resistance at $52,505, the short-term outlook remains favorable for bulls. A breach of the $52,565 level could pave the way for further upside towards $54,000 or $55,000, highlighting the resilience of bullish sentiment in the crypto market.

Trend Analysis:Bitcoin's price action reflects a bullish trend, characterized by higher highs and higher lows within an ascending channel pattern. While the price remains above the DEMA 50, indicating short-term bullishness, potential resistance looms at the EMA 100 level. Traders should closely monitor these moving averages for insights into price dynamics and trend continuation.

  • Ascending Channel: BTC is trading within an ascending channel, highlighting a bullish trend over the time frame displayed.
  • Moving Averages: The price is trading above both the Exponential Moving Average (EMA 100) and the Double Exponential Moving Average (DEMA 50), which are commonly used as dynamic support levels in an uptrend.


Momentum Indicators and Chart Patterns:The RSI suggests room for further upside, albeit below the overbought threshold, signaling sustained bullish momentum. Bullish chart patterns, such as the "Bullish Engulfing" and "Hammer" candlesticks, reinforce the uptrend. However, caution is warranted as a "Bearish Divergence" signals possible weakening momentum and a need for vigilance.

Support and Resistance Levels:

  • Immediate Support: The DEMA 50 at 52,899.99 could provide immediate support.
  • Secondary Support: The EMA 100 at 48,520.94 acts as the next major level of support.
  • Resistance: The resistance is not explicitly marked but would likely be at the upper boundary of the ascending channel or a recent high.

The Intraday 1H Indicator Signals:

- 17 out of 23 technical indicators are showing Buy signal, 1 are showing Sell signal, 5 are Neutral

- 17 out of 18 moving averages are showing Buy signal, 1 are showing Sell signal


Weekly Pivot Points:Pivot points provide crucial reference levels for identifying potential trend reversals and key price zones. Traders can leverage these levels to refine their entry and exit strategies, enhancing risk management and trade execution.

WR3 - $53,330

WR2 - $52,753

WR1 - $52,484

Weekly Pivot - $52,175

WS1 - $51,907

WS2 - $51,597

WS3 - $51,017

Potential Scenarios:

Bullish Continuation:

  • The price may continue to respect the ascending channel's support and move towards the upper boundary.
  • A break above the channel could indicate a strong bullish movement, possibly reaching new highs.

Reversal (Bearish Scenario):

  • A break below the DEMA 50 could signal a short-term reversal, potentially leading to a test of the EMA 100.
  • If bearish divergence leads to a reversal, the price may fall out of the ascending channel and find support at lower levels.


  • The bearish divergence on the RSI is a warning sign that the current bullish momentum may be waning.
  • The presence of pin bars at the top of the trend suggests that there is significant selling pressure at higher price levels.

Trading Insights

  • Monitor the RSI for further signs of divergence.
  • Watch for a break of the ascending channel for potential entry/exit points.
  • Consider the volume accompanying any breakout to validate the move.
  • Stay aware of key support levels for potential bounce trades if the price were to retract.

Useful Links

Important Notice

The begginers in forex trading need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp market fluctuations due to increased volatility. If you decide to trade during the news release, then always place stop orders to minimize losses.

Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes. For successful trading, you need to have a clear trading plan and stay focues and disciplined. Spontaneous trading decision based on the current market situation is an inherently losing strategy for a scalper or daytrader.

#instaforex #analysis #sebastianseliga

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