Buying BTCUSD after short-term shocks with target at 96000 level

On Tuesday, February 25, the Bitcoin (BTCUSD) rate continued its decline from last Friday, opening at $93,618.00. This decline was caused by the hack of cryptocurrency exchange Bybit on February 21, which resulted in the theft of about $1.5 billion in Ethereum.

The range of the cryptocurrency rate fluctuations has continued to shrink in recent weeks, indicating that traders are hesitant amid uncertainty in the global economy. Trading volumes remain insufficient to break through key levels, keeping pressure on investor psychology.

However, the outlook is favorable, and the rate may recover. Despite JPMorgan's warning about downside risks due to weakening institutional demand for futures and ETF outflows of $924 million over two weeks, these factors may be temporary. The Montana House's decision to reject the Bitcoin reserve bill is also a local issue and has no long-term impact on the global market.

In the coming week, attention will be focused on macroeconomic data, including the Conference Board Consumer Confidence Index, Q4 US GDP, and other inflation gauges. GDP, expected to grow by 2.3%, may have a positive impact on crypto market sentiment, especially amid concerns about the Federal Reserve's monetary policy and its impact on risky assets.

From a technical point of view, Bitcoin is close to a downward breakout, but the psychological support level of $90,000.00, which has been holding for almost 3 months, may provide a rebound. The MACD line continues to move downward, indicating the current downtrend. The RSI indicator is hovering in the range between 30 and 70, but the latest decline below 40 may signal a possible imminent shift in favor of buyers. The Chaikin oscillator is showing a decline, which confirms a decrease in buying volume, but may also be indicating the exhaustion of selling.

If the support level holds, Bitcoin could rebound to 96,000.00 and the consolidation that started this month could continue. Given the strength of the current support levels and the upside potential, buying Bitcoin at the current price remains attractive.

Current Recommendation:

Buy BTCUSD at the current price. Take profit — 96,000.00. A Stop-loss — 90,000.00.