In these weeks the general trend of bitcoin was very unclear and confusing, but by doing a technical and volume analysis added to the fundamental analysis, it could be predicted what would happen and where the trend and price of this cryptocurrency would go. So to begin with, I will explain what information the technical analysis throws up.

What does technical analysis show us?

When we see the bitcoin chart in a one-day time frame, we can notice that from November 10, 2021, the day from which the price reached its historical maximum of 69020 USD, the price began to fall, thus starting a downward trend. However, as of January 23, 2022, the price began to rise, moreover, it was seen that a new upward trend was beginning, in addition to the fact that on February 4, 2022, the opening price was 37,330 USD and the closing price was of 41593 USD, thus achieving a percentage of 11.42% in one day. However, there were some details to take into account, such as the candles between January 23 and February 1 that did not show strength or body, the price simply rose slowly and calmly until February 3. In addition, it must also be taken into account that a trend, whether bearish or bullish, has lasted an average of 3 months or more, and as of January 23, it had not yet been 3 months since the downward trend that began on November 10, which is why it still the value of bitcoin could be expected to drop.

The volume an indicator of what the whales do

The volume of purchase or sale also helps us to see where the price is going, since what the big buyers or whales do affects the market in a notable way. On January 24 there was a large volume of purchases which caused the price to go up but in the following days, in particular on January 25 and 26, there was a large volume of sales but it was compensated because on those days there was also a large purchase volume, which caused the price not to fall, but to lateralize and gradually raise the price. Finally, on February 4, there was a large volume of purchases, which caused the price of bitcoin to rise suddenly in one day. With this, it would be expected that in the following days the price would go up, thus starting an upward trend, however, for the upward trend to continue, there had to be large purchase volumes in the following days, but that did not happen, since the On February 10, there was a large volume of sales and purchases, but what also contributed to the drop in price was that it affected what was happening in the world.

The information provided by fundamental analysis

Regarding the fundamental analysis, the news that Russia was planning to invade Ukraine had traders watching what would happen to the price of bitcoin as the price was expected to drop. And it was successful since from February 10 to February 24 the price fell from 45871 USD to 34347 USD.

Conclution

The price so far has risen from $34,347 to $39,758 on the 24th of February. There was also a large buying volume that day so it can be expected that the price will continue to rise, thus confirming the upward trend that began on January 23. However, this will be seen in the following days and we would have to wait for a large purchase volume to be sure that it will continue to rise. In the event that a large purchase volume does not appear, we should be attentive to the price of 34,800 USD and also to the price of 30,000 USD, since in these areas the price supports are found and they are good buying opportunities.