A few days after the Bitcoin price plunged below $44k, shaking off weak hands, the digital gold is back above $48k and most likely to break $50k.
With backing from an array of supportive fundamentals, buyers are confident of the network prospects.
As of writing on Mar 2, the BTC price is up roughly six percent on the last day, firm above $48.8k, and unwinding losses of late February 2021. Technically, price action now favors bulls. Nonetheless, the path of least resistance may favor buyers, especially if there are sharp, high volume gains above the $50k psychological sell-wall.
At the time of writing, there are more participants. On the last day, for instance, Bitcoin trading volumes rose six percent to $57.7 billion. Because of rising prices, this suggests bulls, keen on adding to their longs in anticipation of higher highs in the coming days of trading.
Bitcoin Price Overview
Bitcoin bulls appear exhausted if price action from a top-down approach leads. However, in the immediate term, there is wriggling space for bulls aiming to edge past $50k.
Already, there is a double bar bullish reversal pattern in the daily chart. Albeit with lower trading volumes, it may be the foundation for higher highs, unwinding losses of Feb 22 and 23.
Nevertheless, resistance remains at $50k while support (buy-wall) is at $42k—around January 2021 highs. For buyers to be in control, a break above $50k may spark another wave of FOMO, lifting the BTC/USD price to over $58k in a buy trend continuation pattern.
On the flip side, $42k affirms buyers’ presence but only if sellers fail to push prices below Jan 2021 highs, invalidating the retest. This level can be a retest and a foundation for another wave of bulls towards February highs—or higher, as we advance from current price action.
Bitcoin Market Movers
Bitcoin is a public ledger for moving value without intermediaries. Its market cap now stands at $904 billion, according to trackers.
Due to its value proposition and widespread adoption, the coin has institutional support. Jurrien Timmer, the Director of Global Macro at Fidelity, thinks the coin is more of a digital gold. Its properties mean BTC can be a fitting counterweight against inflation.
Bitcoin: In my view, bitcoin has evolved to the point that it could be treated as a form of digital gold…a possible counterweight to future monetary inflation. My current take on the cryptocurrency, here: https://t.co/Ud6GrBpIp2
— Jurrien Timmer (@TimmerFidelity) March 1, 2021
In a new research report, Citi Bank contends that the evolution of the currency means it can be a choice currency, facilitating international trade. Bitcoin is borderless, censorship-resistant, and highly reliable, working every day of the week.
Citi has a new, 108-page report on #bitcoin, which concludes the cryptocurrency “is at a tipping point and we could be at the start of massive transformation of cryptocurrency into the mainstream.” pic.twitter.com/D3WxigW4zI
— Carl Quintanilla (@carlquintanilla) March 1, 2021
In the face of the rapid debasement of the Nigerian Naira, citizens now opt for BTC as an inflation hedge:
Nigeria has skyrocketed in peer-to-peer #Bitcoin trading and is now the 3rd largest country in the world, by volume.
— Documenting Bitcoin 📄 (@DocumentingBTC) March 1, 2021
Bitcoin Price Prediction
The BTC/USD uptrend is firm.
As of writing, the coin is up roughly six percent, rewinding last week’s losses.
There is a double bar bullish reversal pattern from around Jan 2021 highs. With lighter trading volumes, buyers are flowing back, confirming the retest.
However, for a full swing buy trend continuation, a break above $50k—the middle BB–and Feb 23 highs at $54k, could trigger another wave of buy pressure. The immediate-term buy target for BTC/USD pair is at $58k—Feb 2021 highs.
Sharp, high-volume losses below Mar 1 lows confirm sellers of late Feb, setting the pace of further degradation towards $42k or worse.
Chart courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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