Bitcoin Can Gain Up To 25% in March

Bitcoin price is up 3.5% in February, but more importantly, it is trading above the key level at $9,000. The bulls are now creating a base for a move towards $12,000.

Fundamental analysis: Volatility may further pick up

Bitcoin volatility increased in January by 8% to a 3-month high of 58.2%, according to data in Kraken’s “January 2020 Volatility Report”. In the same month, the world’s largest digital coin gained more than 30%.

Moreover, the data from Kraken shows that there is an increase in open interest, which could mean that “the market is preparing for a trend-setting, explosive move.”

Additional information points toward “whales awakening”, which can further support Bitcoin price. Whales are referred to as addressed with a high accumulation of digital assets, that can create price fluctuations,.

It is believed that the number of whale addresses has increased from 2,000 to 2,030.

Technical analysis: Bulls eye more gains

Despite this week’s move lower, that erased 2.5% of Bitcoin’s market value, the bulls are still in control. The reason for this is the fact that Bitcoin still trades above the $9,000 mark, which for Bitcoin is a bull/bear line.

Bull/bear line is an extremely important level for an asset with price movements above the line indicating bullish conditions and movements below, signalling a bearish outlook. As long as the bulls are keeping the price action above the $9,000 handle, there is a solid base in place for a push higher.

Another leg higher is likely to result in a test of last week’s high at $10,500. A strong bullish move would likely facilitate a test of the two-year high near the $14,000 mark. In between these two levels, there is another level which may attract interest from both sides - $12,300.

Summary

Bitcoin volatility has picked up in January which signals that the whales are on the move. Some analysts believe that this can lead to another Bitcoin rally, as the bulls target $10,500 and $12,300 in the short term, with $14,000 being a possibility as well.