Is Bitcoin a good buy now? BTC pulls back as it fails to break $38,6k

By: Ilija Rankovic
Ilija Rankovic
Ilija is a trader, analyst, writer and consultant with a prolific experience in the finance industry. He focuses on… read more.
on Feb 4, 2021
  • Influx of Bitcoin bulls pushed its price to the upside early Thursday.
  • BTC couldn't pass the $38,620 level, which has, in turn, caused a pullback.
  • The cryptocurrency is currently testing its 50-hour EMA.

Bitcoin (BTC) broke out of the sideways trading channel on 2 February and headed towards (and past) the $38,000 mark as the bulls gathered. However, bears took over the market as BTC couldn’t break its recent high of $38,620. What’s next, and should you buy some BTC now?

Fundamental analysis: six-figure price predictions from various analysts based on on-chain data

The largest cryptocurrency by market capitalization managed to establish its position above the 23.6% Fib retracement level of $34,577 mark on Tuesday. This level confirmation created a great position for an upward price move. BTC then continued past the $38,000 mark, but failed to break the recent high of $38,620.

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Bitcoin’s overall outlook is undeniably bullish. Its booming on-chain stats, as well as institutional interest, created an aura of positive short and long-term sentiment. Multiple analysts and analysis firms made six-figure price predictions for 2021.

BTC managed to post week-over-week gains of 14.37%, falling behind ETH‘s gain of 20.03%. At the time of writing, BTC is trading for $36,850, which represents a month-over-month price decrease of 5.59%. The largest cryptocurrency by market cap currently boasts a market value of $683.35 billion.

BTC/USD technical analysis: BTC fails to break $38,620, causing a pullback

The largest cryptocurrency by market cap was shifting between bearish and bullish, but was mostly slightly bearish after BTC reached an all-time high of $42,000. However, after creating a double bottom at the 38.2% Fib retracement level, (and the 50-day EMA) Bitcoin pushed towards the top side of the range, bound by the $34,577 level.

Recent price action happened as a result of BTC establishing its price above the 23.6% Fib retracement level, causing even more bulls to enter the market (which was confirmed by the increase in volume. However, the recent $38,620 level could not be passed, and BTC entered into a consolidation mode.

While Bitcoin’s short-term overview is not as bright as some other cryptos’, its long-term overview is underniably bullish.

BTC/USD daily chart
BTC/USD daily chart

BTC’s RSI on the daily time-frame has topped slightly above 60, and is slowly descending. Its current value is sitting at 59.21.

BTC/USD 1-hour chart

Bitcoin’s hourly time-frame better shows the influx of buyers that first took BTC above the 23.6% Fib retracement level, and then towards the $38,620 as well. BTC was supported by the 21-hour EMA along the way. Bitcoin’s price is currently testing the 50-hour EMA after dropping to around $36,500.

Where to buy right now

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