Bitcoin (BTC) Price Prediction – February 1, 2021
Following the bulls’ inability to break the $38,000 resistance, BTC/USD price slumped into the previous range bound zone of $30,000 and $34,000. Today, Bitcoin is trading at $33,694 at the time of writing.
Resistance Levels: $45,000, $46,000, $47,000
Support Levels: $35,000, $34,000, $33,000
On January 30, BTC price fell to $32,827 low but failed to move above the $34.500 support. As a result, the coin remained above the $32,000 support. Today, buyers are attempting to push the price upward. If the bulls break the $34,000 resistance, the upside momentum is likely to resume. Buyers will attempt to revisit the $38,000 resistance to break it. A rally above $40,000 is likely. On the other hand, the failure of the bulls to push the price above $34,000 will attract further selling. The BTC/USD will drop by $30,000 support. Bitcoin will further decline to $26,000 low, if the $30,000 support cracks.
Bitcoin Is “Gold-Like” but Governments Won’t Let it Be, by Ray Dalio
Ray Dalio is a billionaire hedge fund manager who has recognized the technical accomplishments of Bitcoin and commended its ability to last for over a decade. He said: “I believe Bitcoin is one hell of an invention. To have invented a new type of money via a system that is programmed into the computer and that has worked for around 10 years and is rapidly gaining popularity as both a type of money and a store hold of wealth is an amazing accomplishment.” Dalio believes that Bitcoin is “alternative gold-like asset,” which will be relevant in the future due to the degradation of fiat currencies by excessive money and debt printing. According to him: “Those who have built it and supported the dream of making this new kind of money a reality have done a fabulous job of sustaining that dream and moving Bitcoin (by which I mean it and its analogous competitors) into being an alternative gold-like asset. There aren’t many alternative gold-like assets at this time of rising need for them (because of all the debt and money creations that are underway and will happen in the future).”
From the price action, the bulls are attempting to break the $34,000 resistance. However, in a downtrend, the price retested the 78.6% Fibonacci retracement level. The retracement level suggests that BTC price will fall to level 1.272 Fibonacci extension or the low of $26,129. At the 1.272 Fibonacci extension level, BTC will reverse and return to 78.6% Fibonacci retracement level where it originated.