Bitcoin (BTC) faced a showdown with the key trend line on February 28, when the monthly close finally arrived.
Bitcoin “does not feel bullish” at the close of February
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair circling in an area around $23,500 at the open on Wall Street.
With US stocks flat and the US dollar avoiding any further strengthening, eyes were on Bitcoin to preserve its gains through last-minute volatility.
“I would like to see more Bitcoin supply liquidity enter the active trading range to increase the chances of closing the monthly candle above the 50-month moving average”, wrote the Material Indicators tracking resource in one of several Twitter posts of the day.
“Volume has been weak, so at this stage it doesn’t feel bullish.”
An accompanying chart showed the bid and ask levels of the BTC/USD pair on the Binance order book.
Material Indicators noted that the month of March held a key macroeconomic event in the form of the Federal Reserve’s upcoming decision on raising interest rates. This one came on March 22 courtesy of the Federal Open Market Committee (FOMC).
“Close above the 50-month MA = Bullish close below $23.128 = Red and an invitation to retest key support levels”, continued part of another post
“Close between the 50-month MA – $23.128 = Green monthly close and range until the next rate hike around the March 22 FOMC meeting.”
Scott Melker, the trader and podcaster known as “The Wolf of All Streets,” meanwhile demanded more than the spot price, calling the area immediately above “no man’s land.”
“Breakout bullish (red zone) remains support for now. Still in no man’s land between $21.473 and $25.212”, commented on a chart showing target levels.
All calm in the macro panorama
Meanwhile, The lack of direction in the US dollar removed a potential headache for risk asset bulls on the day.
The US dollar index (DXY) hit multi-day lows as it failed to recover after giving back the previous week’s gains.
In US stocks, the S&P 500 was down 0.2% as of this writing, while the Nasdaq Composite Index was flat on the day.
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