“Bitcoin price should see $ 50,000”

Bitcoin price surpassed the critical $ 35,000 level, a few days after MicroStrategy presented BTC to more than 1,400 companies, and began trading at over $ 40,000 as of February 6.

Considering the movements earlier this week, this breakout of over $ 35,000 was an important step towards reaching an all-time high. The latest hurdle at $ 40,000 has delayed BTC’s bounce from its all-time high, while as of last week it had a positive impact on altcoin prices.

Will the addition of Ether (ETH) currency in CME futures change market momentum next week or will Bitcoin continue its climb? Analyst Michael van de Poppe evaluated.

Bitcoin must break ultimate resistance before its all-time high

4-hour chart for XBT / USD pair. Source: TradingView

The 4-hour Bitcoin’s chart shows a nice breakout above $ 35,000. Subsequently, a healthy rise was observed towards $ 40,000. The $ 38,000 level was rejected, albeit weak. However, it did not work as a major resistance.

The $ 38,000 level served as a resistance for Bitcoin during the intense interest generated by Elon Musk. Consequently, if Bitcoin surpasses $ 35,000 again, it was not surprising that the $ 38,000 resistance was broken and continued to $ 40,000 instead of working once again.

This $ 40,000 area is the last hurdle to break before its all-time highs.

What are the next critical areas for Bitcoin?

1-day chart of the BTC / USD pair. Source: TradingView

The daily Bitcoin chart can be used to identify the next targets for the price. If Bitcoin’s price closes above the $ 40,500 area, the Fibonacci extension prediction can be produced.

When using this indicator, 1.618 Fibonacci level is preferred, which is the most common option. This level puts the potential price target for Bitcoin at $ 50,000.

1-day chart of the BTC / USD pair. Source: TradingView

However, Bitcoin’s price has already experienced a significant rally in recent months. Therefore, a clear break above all previous-time highs should be complemented by a clear support / resistance conversion at this level. Otherwise, the range-dependent structure is likely to continue, as in the past.

In the chart above, it turns out that the Bitcoin price has recently tried to move above the highest level (after the halving) but failed, and subsequently moved horizontally in range. However, a breakout above the all-time high of $ 42,000 should push Bitcoin’s price up to $ 50,000, according to analyst Michael van de Poppe.

The opinions and comments expressed here are only analyst belongs. It may not reflect Cointelegraph’s views. Every investment and trading transaction involves risk. When making your decision, you should do your own research.

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