Bitcoin (BTC) price prediction for March as Citi says cryptocurrency is at a “tipping point”
- Citi claims BTC is at a “tipping point” and has a potential to become the preferred currency for international
- Yesterday’s price action is a signal we are in a dip-buying market
- Fibonacci extension lines have yielded next targets for cryptocurrency investors - $62,600 and $68,000
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.
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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.
“Our expert interviewees saw 2020 as a tipping point for mainstream institutional investors entering digital currencies markets, with Bitcoin leading the way. A number of metrics are often cited as important proof points for this transition,” it is said in the research paper.
Bitcoin is increasingly seen as a hedge against inflation in times when the world is witnessing record low interest rates.
“The intersection of low yields and inflationary expectations has increasingly fostered the institutional investor view that Bitcoin could represent an inflation hedge, a portfolio diversifier, and a safe haven not currently offered by traditional government bonds all at once.”
BTC has also been described as a store of value, similar to gold.
“The supply of both is seen as finite, though the amount of gold still existing in the earth is unknown whereas the amount of un-mined Bitcoin can be precisely calculated. Gold can be divided into ever smaller amounts, from ounces to half ounces, quarter ounces, grams etc. Bitcoin can be divided into Satoshi units equating to 100 millionth of one Bitcoin.
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.
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.