On the evening of February 28 Bitcoin recovered to $84,700, although the price dynamics remain volatile. Fluctuations within the intraday range of $78,197 to $84,854 could be a sign of a bull trap, as technical indicators point to underlying weakness despite short-term rebounds.
Currently, multiple technical indicators are pointing to the dominant trend remaining bearish. The Relative Strength Index (RSI) is at 25, signaling neutral conditions, while the Moving Average Convergence Divergence (MACD) remains negative at -3, indicating the strength of the bearish momentum.
The momentum oscillator is registering at -11, reinforcing the weakness in the upside price action. And while the stochastic and commodity channel index are currently pointing to short-term positive signals, the broader moving averages (MAs) are overwhelmingly pointing to continued downside pressure.
On the BTC daily chart Bitcoin traded well below key resistance zones between $85,000 and $90,000, with the downward trajectory supported by heavy selling volume. Every major moving average, including the exponential moving average (EMA) and simple moving average (SMA) for 10, 20, 30, 50 and 100 periods, reflects strong negative sentiment. It appears that any rebound to resistance will face significant selling pressure.
BTC/USD 1D Daily Chart on Bitstamp 28 February 2025 city
The 4-hour chart shows a sell-off followed by a moderate recovery, which, however, has not established a sustainable uptrend. Resistance remains at $84,500-$86,000, while support is around $78,000-$80,000.
A break above $85,000 with heavy volume could shift momentum toward $90,000, but a pullback there would likely precipitate another decline. The Average Directional Index (ADX) at 43 confirms that the prevailing trend is in favor of further declines, unless Bitcoin will not break above key resistance levels.
4-hour chart of BTC/USD on Bitstamp 28 February 2025 city
Despite the temporary bounce, Bitcoin technical indicators overwhelmingly point to continued bearish momentum. The dominance of bearish signals across all major moving averages, coupled with weak momentum and a weak MACD, suggests that this recovery could be a bull trap. If Bitcoin will not regain the $90,000 level, the probability of another decline remains high.
