Here’s how Bitcoin (BTC) price could reach $50,000 in February

Bitcoin (BTC) price is recovering ground after dropping to low $30,000s as the price action consolidates near the highs. 

Fundamental analysis: Options market yielding bullish signals

The crypto options market suggests there is a chance that BTC exceeds $50,000 by the end of January. A week ago, the world’s top cryptocurrency has plummeted $40,000 to $30,305 as a result of a sharp sell-off in the spot market, particularly on the Coinbase exchange.

It appears that investors have been betting on the ongoing rally in the options market and are assigning a 20% chance that Bitcoin could surge more than $50,000 by the end of the month. 

Such a price rise would be impressive, even for Bitcoin standards, as there are only two weeks left until the end of the month and the cryptocurrency is about 25% short from the $50,000 mark. 

However, it is not ruled out as Bitcoin price has already made bigger leaps in the past. For example, the cryptocurrency has surged 52% from $19,000 to $29,000 in the last two weeks of December 2020.

Furthermore, U.S. president-elect Joe Biden is set to announce a $2 trillion aid package on Thursday, which is expected to reinforce Bitcoin’s bullish case in the long term.

Technical analysis: Consolidation pattern 

Bitcoin price is now consolidating within a symmetrical triangle and it represents a period of consolidation before a breakout/down takes place. Given that we are in an uptrend, the chances of a breakout are higher. In this case, the measured target for Bitcoin investors is the $50,000 mark. 

Bitcoin (BTC) daily chart (Trading View)

Furthermore, the 161.8% Fibonacci extension line of the most recent correction lower also comes in the region of $50,000. In this case, these areas tend to act as a magnet as they attract the price action towards a zone of interest. 

Summary

Bitcoin price is showing signs of sharper recovery as option market investors have assigned a 20% probability that the cryptocurrency could break above $50,000 by the end of the month. On the technical side, Bitcoin is consolidating within a symmetrical triangle with a breakout upside potentially targeting $50,000. 

The post Here’s how Bitcoin (BTC) price could reach $50,000 in February appeared first on Invezz.

Publication date: 
01/19/2021 - 12:32
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