Bitcoin Holds Above Support Level, Attempts to Revisit $40,500 Resistance

Feb 08, 2021 at 11:04 // News
Coin Idol
Failures of the bulls to resume may attract downtrend

Bitcoin (BTC) price has been consolidating above the $38,000 support since February 7, 2021. The market has earlier fallen, following the bulls’ failure to break the $40,500 resistance.

Bitcoin Price Long-Term Prediction: Bullish

Today, February 8, BTC price is struggling above the $38,000 support and attempting a fresh uptrend. Failures of the bulls to resume upward may attract further downside. It is likely the price will fall to the support at $35,000 low. When this support also cracks, then a further decline to $30,000 is expected.

On February 6, BTC/USD reached a high of $40,900, after clearing the $35,000 and $38,000 resistance levels. The bulls could not push on the upside because of heavy selling pressure above the psychological price level. 

Bitcoin would have resumed another round of upside momentum if a breakout has occurred above $40,000. The next target price of $50,000 would have been attained. 


Technical indicators:  

Major Resistance Levels – $40,000 and $42,000

Major Support Levels – $38,000 and $36,000

Bitcoin (BTC) Indicator Reading  

Bitcoin is at level 63 of the Relative Strength Index period 14. It indicates that the BTC price is in the uptrend zone and has not enough room to rally on the upside. Despite the retracement, the price is above the SMAs which suggest a further upward move.

What Is the Next Direction for BTC/USD?

The market is consolidating above the current support for a further upward move. On February 6 uptrend; a retraced candle body tested the 38.2 % Fibonacci retracement level. The retracement gives the impression that BTC will rise to level 2.618 Fibonacci extension. That is a high of $48,503.40. The market will continue to rise if the bullish momentum is sustained


Disclaimer. This analysis and forecast are the personal opinions of the author that are 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.

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