Bitcoin has shown significant growth on the daily timeframe since January 23rd. Over the past 28 days, its value has increased by 40%, reaching a maximum value of $53,015 by February 20, which is the highest since 2021.
Although the price of bitcoin dropped slightly after that, it still holds above the $51,000 mark. However, as a result of the rapid growth, the level of horizontal support is currently missing.
Despite the positive price dynamics, the relative strength index (RSI) gives negative signals on the daily chart, forming a bearish divergence and falling below the 70 mark.
Analysts' view
On the X platform, cryptocurrency traders and analysts make optimistic predictions about the prospects of bitcoin.
CryptoMichNL assumes that the price will rise to $58,000 before halving, which will be followed by a significant correction:
"It is possible that bitcoin will undergo a correction in the near future. I expect the price increase to peak in the range of $54,000 to $58,000, followed by a significant decrease to $40,000 - $42,000 after halving."
Mesawine1 believes that the short-term correction is nearing completion, and a significant upward movement will begin soon.
BTC Forecast: Will the bullish trend continue
The six-hour chart shows a more optimistic forecast than the daily one. After peaking in February, the bitcoin price declined inside a descending parallel channel, which is often a sign of a corrective movement. Thus, the most likely scenario is an upward exit from this channel.
In addition, the price of BTC was in the range of $51,300 - $52,400. Each time it fell below the minimum of this range, it bounced off the channel's support line and returned inside the range. Currently, bitcoin is trading close to the upper limit of the channel. If there is an upward breakout, the price may rise by 6% to the next resistance level at $54,300.
Despite this optimistic forecast, a break down from the channel may cause the price to decrease by 8% to the horizontal support level and the Fibonacci level at $47,400.
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