February 24th Market Analysis from LBank Derivatives

Bitcoin

BTC’s daily chart shows that it reached a high near $24,600 and then pulled back to $23,600 fluctuating 1,000 points in between.

The overall trend is still bearish as the EMA15 has been breached, and the MACD volume is decreasing. The DIF and DEA lines show a death cross trend, and the KDJ is already forming a downward trend.

However, the Bollinger Bands are still opening upward, and the critical support level to watch for is around $23,000. In the 4-hour chart, $BTC has returned to the average line, and the MACD volume is shrinking, while the KDJ is expanding downwards.

Overall, the short-term bearish trend is facing significant resistance.

Ethereum

$ETH’s daily chart shows a near $1,678 indicating strong resistance around the $1,660–$1,680 level. The current low is around $1,630 indicating a consolidation zone.

The critical support level to watch for is around $1,600 as the MACD volume is shrinking, and the DIF and DEA lines have formed a death cross trend. The KDJ is also showing a similar trend, and the midline of the Bollinger Bands has already been broken once.

In the 4-hour chart, $ETH is currently consolidating within the EMA range, while the MACD upward trend is facing resistance. The KDJ is also starting to narrow, and the market is showing divergence. Hence, it is advisable not to go against the trend but to follow the market’s direction.

Both Bitcoin and Ethereum are facing a bearish trend in the short term. The key support levels for $BTC and $ETH are around $23,000 and $1,600 respectively.

It is essential to monitor the MACD volume, DIF and DEA lines, KDJ, and Bollinger Bands to better understand the market sentiment. The shrinking MACD volume and death cross trend for DIF and DEA in both $BTC and $ETH suggest a bearish trend, while the narrowing KDJ and market divergence indicate a potential reversal.

Traders should watch out for the support levels and be cautious while trading in this volatile market. Following the market’s direction and trading with a risk management strategy is advisable to minimize losses.

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