February 16, 2021 / Analytics

Bitcoin Price Analysis: BTC Price Will Grow Amid Popularity Of Cryptocurrency


Bitcoin (BTC) cryptocurrency rate fluctuates in an upward trend and moves to a key resistance zone around $ 50,000. If the bulls break through this barrier, BTC/USD will rise in price to $ 55,000 by February 23rd.

Key Points

  • BTC price fluctuates above the 100 hour moving average ($ 47,879).
  •  A bearish trend line has formed with resistance at $ 49,000 on the hourly chart.
  • The main support barrier is located at $ 47,000.

BTC value renewed its ATH on February 16, reaching $ 49,938 (Bitstamp data). Immediately after that, the asset rate corrected to $ 48,545 and is now hovering above $ 49,000.

The growth of the cryptocurrency rate slowed down after the pump on February 8. BTC began to actively sell at their peaks, so over the past week, the value of BTC fell three times after reaching a record level. If this trend continues, then the price of the coin will decline during the next session. The bearish target is at $ 47,000, which is the line of the bullish trend that started on February 8th.

btc chart

Bitcoin Will Increase Amid Growing Popularity Of Cryptocurrency

According to ZeroHedge, the stock price of Mastercard and US bank BNY Mellon rose 2% after businesses announced plans to add support for Bitcoin. Mastercard will allow merchants to accept payments in BTC, while BNY Mellon will open a crypto vault for institutional investors. This news, combined with Tesla’s $ 1.5 billion purchase of Bitcoin, suggests that big business is becoming part of the crypto industry.

Analyst Willy Woo said that traders who rarely sold BTC bought a lot of coins from early January to February 5 (the volume is indicated by the red bars on the chart). In his opinion, this fact suggests that a large amount of Bitcoin falls into “strong hands”, that is, to people who are most likely to trade long positions.

btc chart

In the medium term, the value of BTC should rise, as at the moment there are no signs of an impending reversal in the market. The occurrence of a bearish trend will be indicated by a drop in the price of Bitcoin to the “Tesla pump” – to the $ 39,000 area. A slowdown in the upward trend, of course, does not instill confidence in the continuation of the bullish trend. However, the current situation on the market can be described as consolidation before the upward surge with a target of $ 55,000. The previous consolidation lasted one week, the current one – six days. Thus, it can be assumed that the BTC rate will start pumping on February 18.

Technical indicators:

  • 4 hours MACD indicator is in the bearish trend zone.
  • 4 hours RSI is above 50 (in the neutral zone).
  • Major Support Level – $ 47,000.
  • Major Resistance Level – $ 50,000.
  • The nearest pivot points are $ 45,476 and $ 49,931.
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