Analyst Eric Krown Crypto is warning Bitcoin investors that this might be the last heads-up for February. In a recent video, Krown talks about how Bitcoin has been doing well, showing five straight green months, which hasn’t happened since September.
Krown looks at the history and notes that usually, after a green month, there are about three more before a red one. The current trend puts Bitcoin in a unique spot, possibly heading for a sixth green month.
However, Krown also points out some signs on the monthly chart that suggest Bitcoin might be undecided, potentially hinting at a reversal. He thinks February could be a chance for a correction, given Bitcoin’s rapid rise without many pullbacks since September.
Switching to the five-day chart, Krown notes the volatility at extreme lows and the stochastic momentum setup indicating a downside disposition. He suggests a potential short-term rally to $44,000 or $45,000 before a more likely move to the downside, stressing the importance of $46,000 as a bullish confirmation level.
In simpler terms, Krown thinks Bitcoin might take a breather and go down a bit, possibly to around $40,000, before potentially going up again. He reminds everyone to be cautious and pay attention to key levels to confirm where Bitcoin might be headed. While discussing the worst-case scenario, which could be around $28,000, he believes $42,250 is critical to watch for confirmation of a local high.
Bitcoin is at a big decision point. It dropped 12% from its recent high last month and now faces the risk of breaking the critical $40,000 support. This $40,000 level has supported Bitcoin strongly in the past, making some people hopeful for a possible bounce back. However, if Bitcoin falls below $40,000, the next support level is around $30,000. At the time of writing, Bitcoin is trading at $42,800.