Bitcoin Exclusive Price Analysis (February 20)


Bitcoin Exclusive Price Analysis (February 20)

Bitcoin Exclusive Price Analysis (February 20) : Specific Bitcoin Price Analysis (February 20) Passing the Bitcoin market value of over $ 1 trillion as the price moves above $ 53,000 could be a good incentive to attract new buyers (both micro and corporate) to the field. The Bitcoin market value finally reached $ 1 trillion yesterday (February 19th). This will be an important turning point, as the growth of bitcoin has led new investors to dedicate part of their portfolio to this digital asset.

Glassnode data from Blockchain, a data analytics firm, indicates that real investors with high asset values ​​continue to inject their capital into Bitcoin. In fact, the number of Bitcoin addresses with a value of over $ 1 million has reached 94,000. Another positive sign, according to information obtained from Whalemap, is that the number of addresses with between 1,000 and 10,000 bitcoins has been increasing during the recent bull market trend. This is while the past bitcoin market of Bitcoin (ending December 2017) this figure has been declining.

There are currently conflicting views among analysts and activists about the future of Bitcoin. For example, while Bobby Lee, CEO and founder of Ballet Cryptocurrency Wallet, believes that the price of Bitcoin may continue to rise and could rise to $ 200,000 to $ 250,000, analysts at the financial services company American and multinational banking JP Morgan Chase (JPM) believe that bitcoin is valued much higher than its real value and behaves similarly to cyclical assets. The group also called digital assets the weakest tool for major stock risk hedging. Meanwhile, MicroStrategy has announced that it will buy another $ 900 million in bitcoin.

With Bitcoin moving to $ 56,000, last Friday’s option contracts have completely expired in favor of buyers. After a 160 percent increase in price over the past three months, the bitcoin open interest rate has reached a new record of $ 12 billion. Although this number may seem unusually high, it makes sense for this figure to grow further as the bitcoin market value exceeds $ 1 trillion.

In addition to these views, we know that the nature of 24-hour, non-stop trading of digital currency markets means that these markets are always active somewhere on the planet. Also, as the current bullish market has attracted more attention among retail and institutional investors, it seems that the trend of declining trading volume over the weekends is no longer very noticeable.

While traditional markets close on weekends, the upward acceleration of bitcoins and coin operators shows no signs of weakening. Recent historical data show that the bitcoin surge (rally) in 2021 tends to occur on weekends. With these interpretations, many analysts believe that this digital asset could hit $ 60,000 today and tomorrow. With all these interpretations, in order to weight each of the future price movement scenarios, we follow the Bitcoin chart.

In a previous market analysis, we drew a downward trend in the price of gold relative to bitcoin, and said that every time the price of gold to bitcoin hit the floor of this uptrend, we saw a long-term ceiling of the dollar price of bitcoin, these ceilings with a blue vertical line They are marked slightly. On the other hand, and similarly, every time the price has hit (channel midline), we have witnessed the formation of a short-term price ceiling in the chart. These ceilings are marked with vertical pink lines. With this study, we said that if the price of gold falls within a few weeks after the analysis and rises against the price of bitcoin, the chart is drawn to the middle channel and we may see a short-term price ceiling. The price of gold has fallen from the previous analysis to $ 1,850 per ounce to the current situation of nearly seven hundred dollars, and compared to Bitcoin, it has recorded a growth of 70% of this analysis. In the current situation, this ratio has reached Middle Channel in its chart. Should we wait for the short-term price ceiling?

Gold price chart compared to bitcoin in weekly time frame

Now look at the same and parallel ascending channels in the weekly time frame in the Bitcoin price. The price has moved to the ceiling of the second channel after the failure of the first channel and after the correction to the middle channel, this channel is moving in a strong movement up to the ceiling of the third ascending channel. Fibonacci correction and projection levels of two different waves have also identified a resistance range of $ 56,500 to $ 62,500 within the same channel.

Bitcoin price chart to Tetra in weekly timeframe

So prices may fall sharply again from this area to the Middle Channel Third Channel. Support stations are $ 50,000 (near Middle Channel), $ 45,700 (blue support line), and finally $ 42,000, respectively. Seeing the price jump from any of these support levels will provide a good opportunity for the oscillators to re-enter the market. On the other hand, if the price ignores these resistances as in the past and intends to climb again, above the resistance of $ 62,500, it will conquer the next stations at $ 68,000 and $ 71,150.

Along with the ups and down scenarios, the price may enter the consolidation and transverse fluctuations phase after hitting the channel ceiling. Therefore, paying attention to the Bitcoin Dominance Index (BTC.D) is not without merit.

Bitcoin Dominance Chart

If the index jumps above the 60% level that is considered important for this ratio, we will see the strength of Bitcoin again towards these goals. But if the index violates this level, with a sudden fall to the red line, we will see the injection of capital into the penins and their sharp growth against bitcoins. So be sure to consider this indicator along with price movements in the coming weeks.

The final suggestion is to control your risk in the trades by optimally adjusting the loss limit, and manage your capital by entering and leaving a step in support and resistance. If you do not have enough knowledge to trade, refrain from entering trades and gradually learn this knowledge by referring to the market analysis training section. This analysis should not be taken as a signal to buy or sell.

Bitcoin Exclusive Price Analysis (February 20)


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