Bitcoin Attempts to Hold Above $34.5k Support Level, Targets $38k High

Bitcoin (BTC) price is making positive moves after reclaiming the $34,500 support and clearing the $35,000 resistance on February 3, 2021.

Bitcoin Price Long-Term Prediction: Bullish

The reclaiming of the $34,500 support opens the door for upside momentum. The clearing of the $35,000 resistance allows price continuation into previous highs. Also, the breaking of the resistance level will allow BTC price to have an easy passage above the $38,000 high.

At the beginning of February 2021, Bitcoin is facing rejection at the $37,000 high and price is retracing on the downside. The current retracement is likely to reach a low above $35,000 before the resumption of the uptrend. On the upside, the market will move up to the $38, 000 price level. After consolidation above the $38,000 support, BTC will rise to $40,500 where it may face resistance.

Technical indicators:  

Major Resistance Levels – $38,000 and $39,000

Major Support Levels – $35,000 and $34,000 

Bitcoin (BTC) Indicator Reading  

Bitcoin is at level 57 of the Relative Strength Index period 14. This indicates that the BTC price has enough room to rally on the upside. The coin is also above the 80% range of the daily stochastic. It indicates that the price has reached the overbought region of the market.

What Is the Next Direction for BTC/USD?

Bitcoin is expected to move up after the recent retracement. In the current Fibonacci analysis, the BTC price has reached the target price and pulled back. On February 1 uptrend; a retraced candle body tested the 50 % Fibonacci retracement level. The retracement gives the impression that BTC will rise to level 2.0 Fibonacci extension. That is a high of $37,065.70. The target price has already been reached.

Disclaimer. This analysis and forecast are the personal opinions of the author and not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.