Bitcoin (BTC) Price Prediction: BTC/USD Declines After Failing to Break the $40,500 Resistance

Bitcoin (BTC) Price Prediction – February 7, 2021
Following the reclaiming of the $34,500 support and the clearing of the $38,000 resistance, BTC/USD price rallied to the psychological price level of $40,000. The upward move could not be sustained as Bitcoin faces rejection. Bitcoin price is retracing and may find support above $37,000.

Resistance Levels: $45,000, $46,000, $47,000
Support Levels: $35,000, $34,000, $33,000

BTC price is retracing after failing to break the $40,500 resistance level. On the upside, if the bulls have broken the resistance level, the upside momentum would have resumed. The next target price would have been the $50,000 high. However, as price retraces, it may find support above $37,000 for the continuation of the upward move. Nevertheless, if the price retraces and breaks below the moving averages, the coin will face further decline. On the other hand, if BTC price finds support above the 21-day SMA or $37,000 support, the upward move is likely to resume. Meanwhile, the Relative Strength Index has fallen from the overbought region to level 56. It indicates that the coin is in the uptrend zone and capable of rising.

Bitcoin Is Likely to Reach $60000 in 2021, Says Investing .Com Analyst
Jesse Cohen, a senior financial analyst at Investing.com has predicted that Bitcoin is likely to reach $60,000 price level in the first half of 2021. According to a survey by Investing.com, 63% of respondents in the United Kingdom are planning to buy some Bitcoin in 2021. Also, about 60% of 800 respondents believe that Bitcoin will surge above $60,000 in 2021. However, the majority of British respondents identify new regulatory restrictions as the biggest threat to Bitcoin in 2021.

Nonetheless, the Fibonacci tool has indicated a downward move of BTC price after the rejection at the $40,500 high. On February 4 uptrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement level suggests that BTC price will rise and reverse at level 1.272 Fibonacci extension or the high of $40,508.80. The reversal is from the recent high to the 78.6% Fibonacci retracement level or above $37,000 support. The price action has confirmed the recent downtrend. Bitcoin has fallen and it is approaching the $38,000 low.