Technical analysis BTC/USD for February 07, 2021

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Bitcoin (Cryptocurrency) Forecast :

BTC/USD - Bitcoin US Dollar :

Bitcoin is likely to reach $50,000 before April, 2021, but the bulls must break through $40,920 in order to resume the up trend.

Our dedicated contributors expect a modestly bullish outlook, forecasting price stability after this week's clear rally. The average outlook for the pair was trading above the area of $37,000 - $37,500.

BTC/USD relatively pushes in an uptrend around the recent upper range-line at the price of $40,920 (last bullish wave).

Last week, BTC/USD declines after failing to break the resisitance level at $40,920 (top price).

Following the rdemanding of the $38,219 support and the clearing of the $40,920 resistance, BTC/USD price rallied to the psychological price level of $40,920.

The upward move could not be sustained as Bitcoin faces rejection. Bitcoin price is retracing and may find support above $38,219.

On the upside, if the bulls have broken the resistance level ($39,000), the upside momentum would have resumed. The next target price would have been the $40,920 high.

However, as price retraces, it may find support above $38,219 for the continuation of the upward move.

Further close above the high end may cause a rally towards $38,219. Nonetheless, the weekly resistance level and zone should be considered.

Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market.

The bias remains bearish in the nearest term testing $40,000 and $40,920. Immediate resistance is seen around $39,000 levels, which coincides with the weekly pivot.

Moreover, the moving average (100) starts signaling an upward trend; therefore, the market is indicating a bullish opportunity above $38,219. So it will be good to buy at $38,219 with the first target of $39,500.

It will also call for a downtrend in order to continue towards $40,000. The strong weekly support is seen at $40,920.

However, if a breakout happens at the resistance level of $37, 000, then this scenario may be invalidated.

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Crypto industry news (Ethereum News - (Source : cryptonews - coindesk))

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1) Bitcoin Back Above $40K as Institutions Lead the Way.

BTC is back within striking distance of its all-time high set early last month.

2) Serbian Man Extradited to US After Being Indicted in $70M Crypto Fraud

The scheme allegedly included offering bitcoin at "half market price."

3) Bitcoin Market Cap May Be 'Overstated' by USD 151Bn - Coin Metrics.

Bitcoin (BTC) market capitalization may be overstated by USD 151.5bn, according to data from the crypto intelligence firm Coin Metrics. And the same may well go for the token's forks, the company suggested.

Coin Metrics arrived at this staggering figure by looking at how many coins may actually be on the market. Per a tweet from the firm, Coin Metrics said that it was "widely understood that whilst there are 18.6m bitcoin in existence, many are lost and not available to the market anymore."

Instead, the firm introduced a free float supply model, claiming that contrary to more conventional figures, "a more realistic representation" of bitcoin's supply would be 14.5m.

4) Spanish Tax Body Will Force Citizens to Declare Overseas Crypto Holdings.

The Spanish Tax Agency – known in the nation as the Hacienda – has announced its intentions to step up its monitoring of crypto, and will move to force citizens and residents alike to declare their bitcoin (BTC) and altcoin holdings, even if those are held on overseas-based platforms.

Per El Economista, the Hacienda has recently outlined its plans for 2021, and appears to suggest that it will apply Modelo 720 rulings to crypto holdings as of this year. The Modelo 720 is a declaration of overseas assets, held outside Spanish territory. Citizens must complete and submit the form if they are receiving money from companies based overseas, hold real estate outside the country or keep bank accounts in other nations.

And now, this declaration will be applied to crypto and digital assets, as the body also "expands its surveillance" and will demand crypto holders hand over information on their assets.

The much-maligned Modelo 720 system has come under fire from political rivals and critics, who claim that it is unfair – and a Brussels-based EU court has also begun looking into its legality.

The material has been provided by InstaForex Company - www.instaforex.com

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