Evaluating the bitcoin price action, analyst Michael van de Poppe pointed to $ 50,000 in the short term
Bitcoin price surpassed the critical $ 35,000 level a few days after MicroStrategy launched 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
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 would break and continue to $ 40,000 instead of working again.
This $ 40,000 area is the last hurdle to break before its all-time highs.
What are the next critical areas for Bitcoin?
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.
However, Bitcoin's price has already experienced a significant rally in recent months. Therefore, a clear break above the all-time high should be complemented by a clear support / resistance transition 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 its highest level (after the halving) but failed, and subsequently moved horizontally in range. However, a breakout above the all-time high beyond $ 42,000 should push Bitcoin's price up to $ 50,000, according to analyst Michael van de Poppe.
(Emre Gunen / Cointelegraph)
