Bitcoin (BTC) price cannot bank on headlines this Monday that a breakthrough in Brexit negotiations has happened. Markets would rather continue their sell-off, which ended on Friday at the end of the official trading week. With a rather light economic calendar this week, markets look set to trade sideways and not make any big waves either up or down.

BTC is set up to face a week of headline-driven news in terms of Brexit and a rather light economic calendar. Traders though need to be aware that markets are facing a wave of oversupply as the European Central Bank (ECB) is set to start selling its portfolio. Expect that risk assets will be on the down foot with BTC set to tank 7% toward $21,969 to find vital support.

With a rather light economic calendar this week, risk assets could book some gains in the meantime. A big turnaround toward $23,878 would see more bulls buy into the price action. Although a breakout looks viable, do not expect an attack at the triple top at $25,246  from last week.

Technically, bitcoin is selling off after touching its 200-week moving average. And due to the negative momentum at the end of the week, it has also fallen below the 50-week moving average. This dynamic may be a prologue to further declines, a predictable tug-of-war near trend levels.

A pullback in bitcoin to $21.5K would remain a correction within a bull market, but a sharp drop below that level could force a reassessment of whether we are out of a bear market.

Bitcoin to extend its losses towards 4HEMA200 before more upside

Feb 28 2023

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