February is just starting and predictions for the market are just starting to appear. During the first month of the year, Bitcoin (BTC) moved from $3,750 down to $3,400 falling almost 10 percent. However, at the beginning of January, Bitcoin surpassed $4,000 for a short period of time. At the time of writing, Bitcoin is being traded close to $3,500 but without any signs of moving to one side or the other.
Although prediction how Bitcoin and cryptocurrencies will behave in the future is something that is difficult to do, there are several options about how Bitcoin could behave. In a recent post published by u.today, they’ve created two scenarios in which Bitcoin could behave. There is one more optimistic and one more bearish.
According to the article, there are several websites that are predicting Bitcoin price to move between $2,863 and $5,712. The longforecast.com made the most bearish prediction while Coinpredictor.io, using an event-based algorithm, predicted the bullish case.
U.today’s bullish report shows that Bitcoin will be traded above $4,000 by the end of February 2019. As per the report, there is strong support at $3,600 and $3,300.
The report reads as follows:
“The stochastic indicator (14,3,3) has bounced off the oversold level of 20% but still lacks any strength. The ADX/DMI indicator, which measures the strength of the trend s currently below the level of 25 which indicates a strong trend. In other words, a range-bound trend is evident, and Bitcoin shows a consolidation.”
A conservative price prediction for Bitcoin for the month of February is a range between $3,900 and $4,200. These levels are also a strong resistance to the price of Bitcoin to keep growing upwards.
The bearish prediction made by U.today for Bitcoin is related to the current support at $3,500 not being able to hold and decline to $3,250. However, there is no answer on whether the $3,250 would hold or Bitcoin will keep falling under that level.
As per this report, we are in a bear market and both the 50-day and 20-day exponential moving averages are going downwards. The support levels around $3,250 and $3,280 are very important. If Bitcoin falls under these levels, it might be dramatic for the most popular virtual currency.
The conclusion made by the author of the articles is that the bearish scenario has higher chances of happening than the bullish one. At the time of writing this article, Bitcoin has a market capitalization of $61 billion.