Analysis and trading strategies

Recent Decline:
The price has dropped sharply after a recent peak around $2,940.

Trend Analysis:
The overall trend leading up to the decline was bullish, as seen from the strong upward momentum earlier in February.
However, a sharp pullback is currently occurring, indicating possible profit-taking or a shift in sentiment.

Support & Resistance:
The nearest support level seems to be around $2,870 - $2,860, where previous consolidations occurred.
If the price stabilizes here, a bounce could occur.
Resistance is at the recent high near $2,930.

Possible Scenarios:
Bullish Case: If buyers step in around $2,870 and push the price back up, we might see a recovery towards $2,900 and possibly back to the highs.
Bearish Case: If the price breaks below $2,870, further downside towards $2,850 or lower could be expected.

Trading Strategy:
For Long Trades: Wait for a reversal signal (bullish engulfing, double bottom, or RSI divergence) around $2,870-$2,860.
For Short Trades: If the price fails to reclaim $2,900, selling into resistance could be an option.