February 23, 2021 / Analytics

Bitcoin Price Analysis: To What Level Will BTC Fall In Price

bitcoin forecast

Bitcoin (BTC) cryptocurrency rate dropped below $ 50,000 and continues to fall. Given the size of the previous dump, the coin should drop to $ 43,000 by March 2.

Key Points

  • BTC price hovers below the 100-hour moving average ($ 52,000) and the resistance barrier at $ 50,000.
  • On the hourly chart, a bearish trend line has formed with resistance at $ 49,900.
  • The downtrend will accelerate if sellers break the support at $ 48,900.

Bitcoin exchange rate renewed its historical maximum, reaching $ 58,355 (Bitstamp data) on February 21. However, the digital asset began to be dumped on Monday. During the session, Bitcoin fell 17% to the local bottom at $ 47,400. Then there was a correction, as a result of which the cryptocurrency rose in price to $ 55,000. Nevertheless, on February 23, a downtrend reappeared.

btc chart

The BTC price dropped below the bullish trend line that started on January 27 twice, but both times bounced up quickly. Thus, it becomes obvious that the key support zone is now located at $ 48,900. If the value of the coin consolidates below this indicator, the bearish trend will continue. Otherwise, it will be possible to hope for a reversal.

To What Level Will Bitcoin Fall In Price?

To assess the prospects of the cryptocurrency, one can draw an analogy with the previous dump that occurred on January 10 after the end of the exponential growth phase of the coin rate. At that time, the Bitcoin price collapsed by 28% in two days. If this situation repeats, then on February 23 or 24, the bottom will be reached in the region of $ 42,000. After that, the value of the asset will grow by 20% – to about $ 50,000.

btc chart

It is not yet possible to determine exactly whether the dump indicates the end of the bullish trend in the Bitcoin market. Therefore, it now makes sense to buy coins at the bottom (around $ 43,000) and sell them after the price of the coin rises to $ 50,000. Taking into account the historical data, we can assume that the downward movement will continue for at least two weeks after the rebound. If during this period the bulls manage to defend the $ 40,000 barrier, then it is worth betting on an upward trend.

The bullish trend began in March 2020. Bitcoin has risen in price by 1484% in almost a year, so control over the market should objectively go into the hands of bears. BTC has never flown so high before, which makes it difficult to predict sellers’ targets. But the starting point of the trend indicates that Bitcoin may well fall in price to $ 15,000.

Technical indicators:

  • 4 hours MACD is in the bearish trend zone.
  • 4 hours RSI is above 30 (in the neutral zone).
  • Major Support Level – $ 48,900.
  • Major Resistance Level – $ 52,000.
  • The nearest pivot points are $ 49,168 and $ 53,920.
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