Bitcoin (BTC) Price Prediction: BTC/USD Rallies to $50,500 High but Fails to Sustain the Upturn

Bitcoin (BTC) Price Prediction – February 16, 2021
Today, Bitcoin bulls have broken the $48,000 and $50,000 resistance levels. BTC/USD has reached the high of $50,500 but was resisted. The bullish momentum could not be sustained because of overwhelming selling pressure above the psychological price level. The price eventually dropped and found support above $48,000.

Resistance Levels: $48,000, $49,000, $50,000
Support Levels: $35,000, $34,000, $33,000

Today’s price action is very significant as buyers were able to push Bitcoin above the $50,000 resistance but pulled back to $48,000 low. Analysts believe that if the $50,000 resistance is breached, Bitcoin will have an accelerated price movement on the upside. In today’s price action the candlestick has a long wick above the $50,000 resistance. The long upper shadow indicates that there is strong selling pressure above the $50,000 resistance. That is the reason BTC price fell from the high of $50,500 to $48,000 low. Bitcoin is trading at $48,309 at the time of writing. On the upside, if the bulls break the $50,000 resistance and bullish momentum is sustained, this will propel the price to rise and rally above the $60,000 high. However, if BTC price faces another rejection, the market will drop to as low as $44,000.

India Crypto Ban Is Like Banning the Internet, Says Former Coinbase CTO
There is an impending ban on Bitcoin and other crypto currencies by the Indian government. In late January, the Crypto currency and Regulation of Official Digital Currency Bill have been introduced in India. The bill lays the groundwork for an official digital currency issued and overseen by the Reserve Bank of India. However, an anonymous senior Finance Ministry official spoke to Bloomberg that the upcoming ban was very likely to occur. He indicated crypto investors will have three to six months before converting their money to legal tender.

The former Coinbase chief technology officer, Balaji Srinivasan has indicated that India’s impending ban on Bitcoin and other crypto currencies is like banning the “financial internet.” He further indicated that: “It’s really important that the ban (India’s plan to ban owning, trading, mining or investing in crypto currency) should not go through. It would be a trillion-dollar mistake for India, without exaggeration.”

Meanwhile, Bitcoin has made a tremendous move as it broke above the $50,000 resistance. However, the bulls were overpowered because of strong selling pressure. On February 8 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that Bitcoin will rise to level 1.272 Fibonacci extension or the high of $50,899.40. If price reaches that level, it is expected to reverse to level 78.6 % Fibonacci retracement level where it originated. The price action has already confirmed these levels and reversed.