Bitcoin (BTC) price prediction for March as Citi says cryptocurrency is at a “tipping point”

Bitcoin (BTC) price rebounded yesterday after a sharp selloff sent the entire cryptocurrency market, as well as stocks, lower. 

Fundamental analysis: Citi sends BTC higher

Citi’s team of analysts conducted a deep-dive into Bitcoin, cryptocurrencies and the underlying blockchain technology. As a result, its clients received a 100+ page document covering all aspects of the world’s largest cryptocurrency.

In the concluding remarks, Citi’s analysts claim BTC is at a “tipping point” at this stage and has a potential to become the preferred currency for international trade.

Bitcoin is increasingly seen as a hedge against inflation in times when the world is witnessing record low interest rates.

BTC has also been described as a store of value, similar to gold. 

Overall, the research paper has been mostly positive on Bitcoin and the future of the entire cryptocurrency ecosystem. 

Technical analysis: Where next?

Bitcoin price is trading about 1% lower today after it rebounded yesterday following a sharp selloff that took place last week. Overall, the price action may now consolidate around the $50,000 mark. 

Yesterday’s price action tells me this is a dip-buying market. BTC price came close to tagging the key short-term support around $42,000 but investors looking to buy Bitcoin were quick to enter the market and push the price action towards $50,000.

Fibonacci extension lines have yielded next targets for cryptocurrency investors - $62,600 and $68,000.

Summary

BTC price is bouncing off the near-term support near $42,000 with the price action now consolidating around $50,000. Once the consolidation ends, we may expect another push higher targeting levels above the $60,000 mark.