Analyst Eric Krown Crypto warns Bitcoin investors that this may be the final heads-up for February. In a recent video, Krown talks about Bitcoin's good performance and shows five consecutive green months, something that hasn't happened since September.
Krown looks at history and notes that after a green month there are usually about three more before a red month. The current trend puts Bitcoin in a unique position and may be heading into its sixth green month.
However, Krown also points out some signs on the monthly chart that suggest Bitcoin could be indecisive, potentially hinting at a reversal. He believes February could be a chance for a correction given Bitcoin's rapid rise without many setbacks since September.
Moving to the five-day chart, Krown notes the volatility at extreme lows and the stochastic momentum setup that points to a bearish bias. He suggests a possible short-term rebound to $44,000 or $45,000 before a more likely move lower, highlighting the importance of $46,000 as an uptrend confirmation level.
Put more simply, Krown thinks Bitcoin could take a breather and fall a bit, perhaps to around $40,000, before possibly rising again. He reminds everyone to be cautious and watch out for key levels to confirm where Bitcoin could be heading. While discussing the worst-case scenario, which could be around $28,000, he believes that $42,250 is crucial to watch for confirmation of a local top.
Bitcoin is at an important decision point. It has fallen 12% from its previous high last month and is now at risk of breaking the critical support at $40,000. This $40,000 level has provided strong support for Bitcoin in the past, giving some hope for a possible recovery. However, if Bitcoin breaks below $40,000, the next support level is around $30,000. At the time of writing, Bitcoin is trading at $42,800.
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