Bitcoin (BTC) price prediction for February: $26,000 in sight

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Bitcoin (BTC) price is showing definite signs of a long-term bullish reversal. However, a short-term retracement might occur before the uptrend continues.

The price of Bitcoin has been on the rise since November 21. At the time, it had just fallen to a new yearly low of $15,476.

After creating a higher low, Bitcoin accelerated its rate of increase on December 30. On January 13, the price broke out of a long-term descending resistance line that had been in place for almost six months. It was a strong sign that the correction was over. The fact that the breakout was combined with a move in the RSI above 70 (green icon) further legitimizes the increase.

Subsequently, the BTC price broke above the $21,000 area and validated it as support. If the increase continues, the next closest resistance zone would be at $24,500. A break above could take Bitcoin price towards $30,000.

On the other hand, a rejection could lead to a further decline towards the $21,000 area.

While the daily RSI is overbought, it has yet to confirm the bearish divergence trendline. As a result, the trend can still be considered bullish.

BTC/USD daily chart. Source: TradingViewBitcoin Price Prediction for Feb: $26,000 is within reach

A closer look at the price action shows that Bitcoin price is likely in the third wave of a five-wave upward move (black). The third wave extended and reached the 2.61 length of the first wave (white). This is common since wave three is the one that most often expands.

If the count is correct, BTC will decline towards the $0.382-$20,740 Fib retracement support level or the $0.5-$19,900 one before rising again.

Although a more precise target can be determined once the fourth wave is over, the 3.61-4.21 extension region at $26,075-$27,840 is suitable for a top.

On the other hand, a drop below the first wave high (red line) at $18,410 would invalidate the bullish outlook and send Bitcoin down towards $16,000. For a long term wave count, click here.

BTC/USDT six-hour chart. Source: Trading View

To conclude, the most likely Bitcoin price prediction for February is a decline towards $20,740 before the price hits $26,000. While a drop to $19,900 would not invalidate this bullish BTC price analysis, a drop below $18,400 would mean the trend is bearish. In this case, Bitcoin should retest $16,000.

For the latest crypto market analysis from BeInCryptos, click here.

Disclaimer

BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for missing facts or inaccurate information. You comply and understand that you must use this information at your own risk. Cryptocurrencies are highly volatile financial assets, so do your research and make your own financial decisions.

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