After trading within the $62,500–$71,000 range throughout February, the BTCUSD pair has finally broken free. A decisive push above the channel's upper boundary ended last month's flat trend, creating an intriguing technical setup. Let’s sort things out together.
1. Bitcoin convincingly climbed above the 50-day exponential moving average (EMA50) on the four-hour (H4) chart. Typically, such a move signals an end to consolidation or a downtrend, laying the groundwork for further appreciation.
2. Prices also managed to breach the $71,000 resistance level, escaping from the range they’ve been in since early February. This breakout serves as another compelling sign of the pair’s upward potential.
So, now may be a good time to open long Bitcoin positions, as momentum indicators favor the crypto. Fundamental factors are moderately bullish, providing additional support for BTCUSD.
Over the last few days, spot BTC ETFs have recorded capital inflows exceeding $1 billion. This influx marks a notable reversal after an extended period of market pessimism, during which traders witnessed five consecutive weeks of withdrawals totaling several billion dollars. Moreover, February was the fourth straight month of negative Bitcoin dynamics.
The recent turnaround could signify a fundamental shift in sentiment. These large-scale inflows point to restored confidence in Bitcoin and crypto-related instruments. More importantly, this activity may represent the early phase of a new accumulation cycle by both institutional players and private investors.
The final recommendation:
— Buy Bitcoin at the current price, with $79,000 in view within the next two to three weeks;
— To manage risk, if the market moves against us, place a Stop Loss order at $70,500, slightly below the support level.
This content is for informational purposes only and is not intended to be investing advice.
