With a record-breaking rally is it the perfect time to exit from bitcoin?

• After a massive rally and smashing all-time high, Bitcoin faces a sell-off in the last week of February
• At the end of February, the cryptocurrency made a hammer above support level on the daily time frame signalling a chance of reversal.

In the last quarter of January, Bitcoin hovered near 50 EMA creating an accumulation zone. From the inception of February, the rally started and broke up all-time high with a decent volume and made a new high above 58000. Although it couldn’t sustain resulting in a sell-off from the level.

In February, big institutions like Tesla and MasterCard embraced bitcoin resulting in a historic month for investors as the crypto has given more than 50% return in just 20 days and 15% in a single day on the 8th of February taking the valuation of the world’s most famous crypto to a trillion-dollar.

After the huge rally, the sell-off happened in crypto resulting in the shredding of its gains and closing near 45,400 levels on the last day of February.

Amid volatility, the trend is bullish on the daily and weekly chart.

Trend Analysis

Weekly trend

On the weekly time frame, the trend is highly bullish and the sell-off is just a small correction. 42000 levels will act as major support. The investors can buy near these levels for a good return.

Daily trend

On the daily chart bitcoin closed near 42000 levels making a hammer pattern which is a bullish reversal pattern near support and 50 EMA indicating a sign of rally again.

Hourly trend

The hourly time frame is in a downtrend, however, if Bitcoin sustains above 48200 the bulls may take control again.

Will Bitcoin continue the rally?

The bulls are pushing the crypto asset with good volume and the selling at the last quarter of February looks like a minor correction. The trend will remain bullish until the price breaks 50 EMA on the daily chart.

Levels to look at: 42000