Bitcoin below $38K: Sell BTC now, regret later?

Bitcoin price analysis for Feb 21 comes with a bearish analysis for investors as the world’s biggest cryptocurrency has broken below the important price level of $40K. It is also important to note that our BTC price analysis for Feb 18 showed that there is a chance that BTC might revisit $37.5K support.

The data from CoinMarketCap shows that the trading volume of the token surged 40.76% in the last 24 hours, followed by a 2.26% drop in the market cap and a 2.15% drop in prices. Moreover, the Market Dominance of the token stands at 41.93%, while the Volume / Market Cap Ratio has a value of 0.02598.

The daily candle for Bitcoin opened at a price of $38.3K and reached a daily high of $39.1K. This was followed by a daily low of $38.1K. On the other hand, the price of 1 BTC at the time of writing is $38.9K. 

Bitcoin price analysis for Feb 21 on the daily chart

In the chart below, we have included 3 major indicators to predict the price trajectory of BTC in the near future.

Source: TradingView

The MACD indicator shows that the MACD line (blue) broke below the signal line (orange) confirming a bearish divergence which means that lower prices will follow. Moreover, the MACD histogram is also bearish in nature, filled with bearish red bars.

The RSI line has entered the bearish zone and reads 41.29. Meanwhile, the gradient of the line is slightly positive for today, and a small surge can be witnessed. 

The price action has dropped down to the lower end of the Bollinger Bands which suggests that there is a chance that Bitcoin might break out of the lower end of the Bollinger Bands. 

Conclusion

Bitcoin price analysis on the daily chart can be concluded on a bearish note and there is a huge chance that the token might fall back to the $37.5K support.