The last month of winter started with an upward trend. That trend is over and it’s time for the market to decide on a new direction.
Over February, Bitcoin’s price has grown by more than 16% and stopped at around $447 per bitcoin.
The start of Spring marks the beginning of a new cycle on the BTC/USD graph.
Bitcoin’s price has stopped at a point where one cycle is changed by another, more significant one.
Change of Bitcoin price trend direction
As a rule of thumb, such points precede a change of direction and a return to previous levels. There is a good possibility of a decline towards the $400 per bitcoin mark, where the price will stop again. But, in order to confirm that assumption, we will need to see specific scenarios in multiple daily structures, because a larger cycle always consists of many smaller ones.
Why exactly can this level be profitable? This point clearly shows possible future movements.
Every trend has at least three waves in its structure:
- The first wave breaks through a key level. It represents the strength of either buyers or sellers.
- The second wave fortifies at that level. That is a testament to the absence of a counterforce.
- The third wave is the longest one, given that its structure doesn’t break soon after forming.
The $400 mark will just be the minimum point for the second wave in its upward movement.
If the structure of the upward trend doesn’t break mid-day, the trend will keep moving up.
Fiat currencies situation
EUR/USD, NZD/USD, and AUD/USD are right now likewise at levels where a change of cycles usually happens, which accounts for a potential for growth.
A resistance at the level of $400-$410 serves as an alternative option for a downward trend. For that scenario to happen, we need to see a break through that level and fortification below it.
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