Bitcoin Teeters On The Edge: Will This Pivot Hold Or Collapse?

Bitcoin (BTC) remains astatine a captious juncture, holding supra its yearly pivot level. In his latest marketplace analysis, seasoned crypto trader Josh Olszewicz outlined cardinal method factors that could find Bitcoin’s adjacent determination successful his latest video analysis, emphasizing the value of RSI divergences, measurement trends, and candlestick formations.

With BTC experiencing dense downward unit implicit the past fewer weeks, Olszewicz examined whether the marketplace has reached an exhaustion constituent for sellers oregon if further downside remains likely.

Is The Bitcoin Bottom In?

A important reflection successful Olszewicz’s investigation is the beingness of bullish divergence connected some RSI and volume, a signifier that historically signals a imaginable inclination reversal. He noted: “BTC for the infinitesimal is holding astatine the yearly pivot, it’s holding astatine the OG Pitchfork here, and we did enactment successful a bullish divergence connected some RSI and volume. We got a little debased successful price, higher debased successful RSI connected little volume.”

This setup mirrors akin conditions observed successful August and September, wherever Bitcoin saw comparatively adjacent lows successful price, but RSI formed importantly higher lows. While this does not warrant an imminent reversal, Olszewicz pointed retired that it increases the probability of a imaginable upside move, particularly if further confirmations arise.

From a candlestick perspective, Bitcoin’s terms enactment is exhibiting aboriginal signs of imaginable stabilization. Olszewicz highlighted the value of Dragonfly Doji formations, peculiarly successful operation with bullish engulfing candles, which often awesome seller exhaustion and inclination reversals.

“What I would emotion to spot connected galore of these charts is what we’re already seeing connected the daily—a greenish Dragonfly candlestick. It’s a tiny assemblage with a agelong wick, showing wide rejection of little prices. If confirmed, this could beryllium an aboriginal bottoming signal.”

However, helium cautioned that portion these patterns tin beryllium indicative of a displacement successful marketplace sentiment, they are not foolproof and necessitate further confirmation from terms operation and momentum indicators. Moreover, Olszewicz added via X: “BTC iHS brewing? Way excessively aboriginal to telephone this definitively but we’ve got the aboriginal trappings of a multi-week bottommost here. Would align with a imaginable kumo breakout successful Q2 and measures to an ATH retest. Something to show passim March, a caller LL would apt negate this possibility.”

Bitcoin inverse Head and Shoulder signifier | Source: X @CarpeNoctom

Olszewicz advised traders to stay disciplined and debar over-leveraging positions successful volatile conditions. He stressed the value of maintaining a accordant commercialized sizing strategy and avoiding affectional decision-making. “You don’t person to marque it each backmost successful 1 trade. You don’t person to revenge trade. Confidence drops successful times of chaos, and that’s erstwhile astir radical marque mistakes.”

He besides warned against blindly dollar-cost averaging into assets simply due to the fact that they look heavy discounted: “Just due to the fact that thing is down 80% doesn’t mean it’s an automatic buy. The technicals mightiness look large today, but that doesn’t mean it won’t support going lower. That’s wherefore hazard absorption is key.”

While the broader macroeconomic landscape remains uncertain—with ongoing tariff concerns and mixed signals from accepted markets—Bitcoin’s method positioning suggests that a imaginable alleviation rally could look successful the coming months.

Olszewicz suggested that March and April could beryllium pivotal periods for Bitcoin, wherever a clearer inclination could develop. However, helium reiterated that for now, traders should absorption connected high-probability setups alternatively than speculative plays. “If BTC tin stabilize present and reclaim cardinal levels, the lawsuit for a stronger betterment into Q2 strengthens. But it’s excessively aboriginal to marque that call. Right now, the champion strategy whitethorn simply beryllium to hold for high-confidence setups.”

At property time, BTC traded astatine $81,599.

BTC faces cardinal resistance, 1-day illustration | Source: BTCUSDT connected TradingView.com

Featured representation created with DALL.E, illustration from TradingView.com