Bitcoin price prediction gives interested buyers a better understanding of the asset’s future performance to help them decide on whether or not to buy. This article discusses BTC price prediction and analysis for February 2021. If you are looking to buy the number one cryptocurrency, read on.
Bitcoin (BTC) Overview
Bitcoin is the first cryptocurrency ever created. It has so far grown to become the biggest in the cryptocurrency space and also the most wanted digital asset. Bitcoin is now said to be digital gold, an argument that is ongoing between Bitcoin supporters and gold supporters. This is because the asset is now considered a store of value rather than just a currency used to buy and sell.
With the evolving use case, investors who used to criticize Bitcoin are changing their minds and investing in it. This includes mainstream corporations and Wall Street investors. In 2020 alone, corporate businesses acquired at least half a million Bitcoin that are currently on their balance sheets.
As a result of the influx of investors, Bitcoin has grown very fast and now has a market capitalization of $696,202,289,296. There are currently 18,601,087 BTC in circulation out of the capped 21 million. According to Coin Market Cap, the current price is $37,088.92, with $64,167,981,958 worth of the asset traded in the last 24 hours.
Bitcoin Price Prediction: Analysis
Bitcoin is still in the bull market that started in November 2020. The price has grown from $15,000 at the time to break through the 2017 all-time high of ~$20,000 to set a new all-time high the same day. Since then, the price grew fast to exceed $30,000. The asset has already set a new all-time high of over $41,000 this year.
It, however, retraced for a few days, reaching as low as $31,000 earlier this week. Although this created some panic, the asset bounced back yesterday after spending some time between $33,000 and $34,000. The price now hovers around $37,000.
Looking at the chart, we can see clearly that there was a major sell-off on 11 January when the dip was on as shown by the trading volume. This was a shake out of weak hands, which happens once in a while. Most of the sell-off was done by retail investors, which made the dip short-lived.
The RSI shows that the asset reached the peak overbought level on 8 January, after which the sell-off kicked in. Buyers have, however, taken control, and the RSI points upward again, explaining the bounce that is ongoing.
The following are important support and resistance levels to keep in mind if you are trading Bitcoin. Calculations are from Walletinvestor.
- Resistance Level (R3): 43954.70;
- Resistance Level (R2): 40759.60;
- Resistance Level (R1): 39009.70;
- Pivot Point: 35814.60;
- Support Level (S1): 34064.70;
- Support Level (S2): 30869.60;
- Support Level (S3): 29119.70.
The chairman of the European Central Bank, Christine Lagarde, has called for the global regulation of Bitcoin. The chairman says that Bitcoin has been used for “funny business” and must be put under check to prevent further use of it for illicit activities.
The ECB and other central banks have always frowned at Bitcoin, claiming that it is used by criminals to fund terrorism, buy drugs as well as for money laundering. Crypto enthusiasts, however, argue that more fiat money has been used for many of these crimes than Bitcoin has. It is also believed that this call for regulation is because of the fear that Bitcoin is becoming popular and could take power out of the hands of central bankers, such as Lagarde.
Bitcoin Price Prediction: Market Opinion for February 2021
To get a complete perspective, we consider the opinions of some price predictors. Below are a number of BTC price predictions for you to look at.
Tradingbeasts’ BTC price prediction places the opening price for February at $28,303.851, not very different from the current price.
|Month||Minimum Price||Maximum Price||Average Price||Change|
|February 2021||24,285.280||35,713.647||28,570.917||-21.48 %|
This website predicts that Bitcoin will open February at $43,800. The maximum price for the month is expected to be $67,467, while the minimum price is $43,800. The closing price for the month is $50.777.
Provisionibitcoin expects the price of Bitcoin to reach $50,304.76 in February 2021.
BTC price prediction for February 2021, according to 30rates, is that it will reach a maximum of $7,467 and a minimum of $32540. It is expected to start the month at $43,837 and close it at $60,123.
Bellow is website’s price prediction for the first half of February:
Bitcoin Price Prediction: Verdict
Bitcoin has shown great promise in 2020 and started 2021 on a very good footing. However, to invest in it still needs some caution and thorough research to know precisely what to expect. We hope this price prediction and analysis helps you to make the right decision to maximize your investment in February 2021.