Recent Decline:
The price has dropped sharply after a recent peak around $2,940.
Trend Analysis:
The overall trend leading up to the decline was bullish, as seen from the strong upward momentum earlier in February.
However, a sharp pullback is currently occurring, indicating possible profit-taking or a shift in sentiment.
Support & Resistance:
The nearest support level seems to be around $2,870 - $2,860, where previous consolidations occurred.
If the price stabilizes here, a bounce could occur.
Resistance is at the recent high near $2,930.
Possible Scenarios:
Bullish Case: If buyers step in around $2,870 and push the price back up, we might see a recovery towards $2,900 and possibly back to the highs.
Bearish Case: If the price breaks below $2,870, further downside towards $2,850 or lower could be expected.
Trading Strategy:
For Long Trades: Wait for a reversal signal (bullish engulfing, double bottom, or RSI divergence) around $2,870-$2,860.
For Short Trades: If the price fails to reclaim $2,900, selling into resistance could be an option.
The price has dropped sharply after a recent peak around $2,940.
Trend Analysis:
The overall trend leading up to the decline was bullish, as seen from the strong upward momentum earlier in February.
However, a sharp pullback is currently occurring, indicating possible profit-taking or a shift in sentiment.
Support & Resistance:
The nearest support level seems to be around $2,870 - $2,860, where previous consolidations occurred.
If the price stabilizes here, a bounce could occur.
Resistance is at the recent high near $2,930.
Possible Scenarios:
Bullish Case: If buyers step in around $2,870 and push the price back up, we might see a recovery towards $2,900 and possibly back to the highs.
Bearish Case: If the price breaks below $2,870, further downside towards $2,850 or lower could be expected.
Trading Strategy:
For Long Trades: Wait for a reversal signal (bullish engulfing, double bottom, or RSI divergence) around $2,870-$2,860.
For Short Trades: If the price fails to reclaim $2,900, selling into resistance could be an option.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.