Bitcoin suffers a pullback beneath $50,000 but the long-term trend remains bullish

Julien Moretto – 24 Feb 2021

The cryptocurrency market will always surprise new investors with its volatility. In the first two days of the week, Bitcoin drops approximately 20%, Ethereum 30%. Sudden price movements that can impress. However, Bitcoin has simply returned to price levels that it was familiar with only 10 days ago. Bitcoin is trading at €41,800 ($50,500) on February 24, up 3.7% over the week.

What to remember from the last three days? Market corrections make it possible to build a trend and not go into parabolic excesses. Until proven otherwise, the long-termtrend on Bitcoin and Ethereum remains bullish. For now, we continue to see corrections as opportunities to strategically position ourselves to buy. Our detailed technical analysis provides you with the most favorable price levels to buy, as well as the thresholds that will confirm a strong continuation of the trend if they are crossed upwards.

This beginning of the week is also marked by positive news for the ecosystem. Tether and Bitfinex have reached an agreement with the New York Attorney General’s office, suggesting that the risks around the stablecoin USDT are over. In addition, recent figures show that institutional investors have placed large orders for mining equipment for Bitcoin, showing their confidence in the asset over the long term.

  • According to CoinGecko, the market capitalization now exceeds the threshold of 1600 billion against 1500 last week.
  • Bitcoin’s dominance declined slightly to 59.4% market share.
  • The best performance of the top 50 is to be attributed to PancakeSwap (Cake) with +118% over one week.

We invite you to discover our analysis in video (in French and dated February 23) :

Bitcoin (BTC)

The Coinhouse recommendation :
Buy on support

The price of Bitcoin evolves around €41,800 ($50,500) on February 24, for a weekly performance of about 4%. The price range between €33,000 and €35,800 ($40,000 and $43,500) will interest us for buying if the price moves down again. On the other hand, if the bounce initiated today breaks the resistance of €43,600 ($53,000), the chances of a direct uptrend will be strong and the price of Bitcoin will move towards new historical highs.

Ethereum (ETH)

The Coinhouse recommendation :
Buy on support

  • Ethereum (ETH) is more volatile. Despite a stronger rebound today, assets are down 5% over the week and is trading at €1375 ($1670). The failure to cross the $2,000 mark was followed by a correction of nearly 30%. However, the underlying trend remains bullish. If the price returns to the €1020 to 1150 ($1240 to 1400) level, it will be an opportunity to buy. On the other hand, if the price goes back above €1,480 ($1,800), it will be a direct continuation of the uptrend.

Polkadot (DOT)

The Coinhouse recommendation :
Buy

  • Polkadot (DOT) earns 21% in one week and is trading around €29.90 ($36.10). The asset has been moving within a bullish channel since early 2021. The most risk-prone profiles may try to buy when they are in contact with the lower bound of the channel, and sell when they are in contact with the upper bound. From a longer-term perspective, the $24.30 to $27.80 range should be strategic for buying, but the price may not return to this range. A return of the price towards the top of the channel, which would coincide with the price zone between $45.20 and $49.90, will be a signal to take partial profits on Polkadot.

Tops & flops of the week (top 50 marketcap)


Tops

1- PancakeSwap (CAKE) : +118%
2- OKB: +114%
3- Binance Coin (BNB): +110%


Flops

1- Bitcoin Cash (BCH) : -22%
2- Bitcoin SV (BSV): -18%
3- Cosmos (ATOM) : -16,5%

In this article, all information is given for information purposes only, even if it has been established from serious and reputable sources. It does not constitute an offer by Coinhouse to buy or sell digital assets, or an offer to provide services on digital assets, nor does it constitute advice, encouragement or a recommendation to operate on the digital assets in question. It constitutes simple information over which the user holds absolute control. We inform you that if you choose to invest in digital assets, you must be aware of our general terms and conditions of sale (https://bit.ly/2FGW2ek) and accept the various risks listed and defined on our legal warning page (https://bit.ly/3c4sQKc).

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