BTC/USD Rebounds, Breaks the $40,500 Resistance, Eyes the $50,000 Target Price
Bitcoin (BTC) Price Prediction – February 8, 2021
In a surprise push, BTC/USD has broken the $40,500 overhead resistance and reached the high of $44,000. Can the bulls sustain the current bullish momentum? The current price level has broken the January 8 price level of $41,969. Buyers have retested the $40,500 resistance on four occasions to break it but to no avail.
Resistance Levels: $45,000, $46,000, $47,000
Support Levels: $35,000, $34,000, $33,000
Bitcoin bulls have broken the $40,500 resistance after one month of a downward correction. If the current bullish momentum is sustained, the upside momentum is likely to resume. The next target price of $50,000 is likely to be attained. In the previous price action on February 6, the bulls broke the $40,500 as price reached the high of $40,900 but the bullish momentum could not be sustained. BTC price fell to the support above $38,000 and it resumed consolidation above it. Today, if the bears have succeeded in breaking the $38,000 support, Bitcoin will drop to $35,000 and later to the $30,000 support level. Nevertheless, BTC price rebounded above $38,000 as price rallied to $44,000 high. This price spike was a result of a news report that Tesla had bought $1.5 billion worth of BTC today.
Tesla Expects To Begin Accepting Bitcoin for Payment
In today filing with the Securities and Exchange Commission, Tesla announced it had purchased an aggregate of $1.5 billion in Bitcoin. The company will accept Bitcoin as payment for its cars without necessarily converting it. Also, Bitcoin is to be held as an investment and a store of value. According to company policy, clients will have the ability to purchase Tesla’s products in Bitcoin. The Bitcoin, the company receives will not necessarily be liquidated as soon as possible, thus possibly adding to its reserves.
Bitcoin has rebounded above the $38,000 support as the crypto approached the target price of $50,000. On February 6 uptrend; a retraced candle body tested the 38.2% Fibonacci retracement level. The retracement level suggests that BTC price will rise to level 2.618 Fibonacci extension or the high of $48,503.40. There is a possibility of a further upward move if price breaks the current resistance.