Popular analyst Eric Krown Crypto warned Bitcoin (BTC) investors that February could be a month of decline. In a recent analysis video, Krown mentioned how Bitcoin has been performing well, including five green candles since September 2023, one of which has not closed yet.
Shared Potential Scenario
Looking back, Krown noted that there is usually a tendency to light three more green candles in a row after a green month before lighting a red one. Currently, Bitcoin has lit five green candles since September 2023, including this month’s unclosed candle, and according to the analyst, it may be heading towards lighting a sixth green candle.
However, Krown pointed out some signs on the monthly chart that indicate indecision in Bitcoin and potentially a reversal of the trend. Considering Bitcoin’s rapid rise since September without much retracement, he added that February could be a correction month.
Looking at the five-day Bitcoin chart, Krown highlighted the extremely low volatility and the stochastic momentum setup signaling a downward trend. Anticipating a potential short-term rally exceeding $44,000 or $45,000 before a more likely downward movement, the analyst emphasized the importance of the $46,000 level as a confirmation point for a real uptrend.
Issued a Downturn Alert
Krown expects Bitcoin to take a breather and possibly fall to around $40,000 before potentially rising again. Reminding to be cautious and watch key levels for confirmation of where Bitcoin could head, the analyst expects a worst-case scenario drop to around $28,000.
According to the analyst, BTC is currently at a major decision stage. It has dropped 12% from last month’s high and now faces the risk of breaking the critical $40,000 support. The $40,000 level pointed out by Krown has strongly supported Bitcoin in the past and gave some hope for a possible trend reversal. However, if Bitcoin falls below $40,000, the next strong support level is around $30,000, which corresponds to a significant drop.
