 ▲ Bitcoin (BTC) |
Bitcoin (BTC) successfully defended the lower boundary of its monthly ascending channel and rebounded, with a technical upper target of $475,000 being discussed.
According to cryptocurrency outlet Bitcoinist on March 2 (local time), Chartered Market Technician (CMT) Tony Severino analyzed that Bitcoin protected a key support level near $60,000 at the close of February. Based on the ascending channel structure on the monthly chart, he explained that if Bitcoin had opened below $60,000 at the Chicago Mercantile Exchange (CME) this weekend, it would have recorded its first-ever “gap down” below the long-term monthly uptrend line.
An ascending channel is formed by two upward-sloping trend lines connecting higher highs and higher lows. The upper line acts as resistance, while the lower line serves as support. According to Severino, even during the COVID-19 crash in 2020, Bitcoin never closed below this lower boundary. Although the price approached the lower trendline throughout February, placing it at a critical juncture, it rebounded near $63,000, avoiding a structural breakdown.
He suggested that if the rebound continues, the next scenario could involve testing the channel’s midline or upper boundary. On the chart, the upper boundary of the channel is indicated at approximately $475,000. However, Severino acknowledged that the likelihood of such an extremely bullish target materializing is low. He added that the current price structure still leans bearish, and meaningful improvement in market conditions would be necessary for a full trend reversal.
The recent correction occurred amid rising tensions between the United States and Israel against Iran. At one point, Bitcoin fell below $64,000, dragging down the broader market, but later showed signs of recovery. As of the time of reporting, Bitcoin was trading at around $66,200, down approximately 3% over the past 24 hours.
Ultimately, the key takeaway is that Bitcoin managed to hold the lower boundary of its monthly ascending channel. As long as this historically maintained trendline remains intact, the long-term structure can be interpreted as undamaged. Nevertheless, Severino emphasized the need for a cautious approach in the short term. Whether the rebound leads to a full trend reversal or signals another correction will likely be determined by future monthly price action.
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