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Bitcoin (BTC) Price Prediction: BTC/USD Falls Into Previous Range of $30,000 and $34,000, Unable to Break $34,000 High

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Bitcoin (BTC) Price Prediction – February 1, 2021
Following the bulls’ inability to break the $38,000 resistance, BTC/USD price slumped into the previous range bound zone of $30,000 and $34,000. Today, Bitcoin is trading at $33,694 at the time of writing.

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

BTC/USD – Daily Chart

On January 30, BTC price fell to $32,827 low but failed to move above the $34.500 support. As a result, the coin remained above the $32,000 support. Today, buyers are attempting to push the price upward. If the bulls break the $34,000 resistance, the upside momentum is likely to resume. Buyers will attempt to revisit the $38,000 resistance to break it. A rally above $40,000 is likely. On the other hand, the failure of the bulls to push the price above $34,000 will attract further selling. The BTC/USD will drop by $30,000 support. Bitcoin will further decline to $26,000 low, if the $30,000 support cracks.

Bitcoin Is “Gold-Like” but Governments Won’t Let it Be, by Ray Dalio
Ray Dalio is a billionaire hedge fund manager who has recognized the technical accomplishments of Bitcoin and commended its ability to last for over a decade. He said: “I believe Bitcoin is one hell of an invention. To have invented a new type of money via a system that is programmed into the computer and that has worked for around 10 years and is rapidly gaining popularity as both a type of money and a store hold of wealth is an amazing accomplishment.” Dalio believes that Bitcoin is “alternative gold-like asset,” which will be relevant in the future due to the degradation of fiat currencies by excessive money and debt printing. According to him: “Those who have built it and supported the dream of making this new kind of money a reality have done a fabulous job of sustaining that dream and moving Bitcoin (by which I mean it and its analogous competitors) into being an alternative gold-like asset. There aren’t many alternative gold-like assets at this time of rising need for them (because of all the debt and money creations that are underway and will happen in the future).”

BTC/USD Daily Chart

From the price action, the bulls are attempting to break the $34,000 resistance. However, in a downtrend, the price retested the 78.6% Fibonacci retracement level. The retracement level suggests that BTC price will fall to level 1.272 Fibonacci extension or the low of $26,129. At the 1.272 Fibonacci extension level, BTC will reverse and return to 78.6% Fibonacci retracement level where it originated.

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