Bitcoin to $65,000 by March fractal analyst

Bitcoin to $65,000 by March! Fractal analyst predicts parabolic move

Bitcoin’s rise to its all-time high above $50,000 has prompted a data analytics firm to predict further upside for the cryptocurrency.

TradingShot, an independent trading management firm, writes in its latest note that it sees the BTC/USD rate at $65,000 by next month. And if the trend continues, the pair could extend its upward Profit Secret movement to $70,000 within the same time frame.

At the core of TradingShot’s analysis lies a technical fractal – a so-called Fibonacci channel that has been crucial in predicting bitcoin price patterns over the past year. The firm applies the same forecasting model to determine the cryptocurrency’s next potential move and comes up with analogies that look overly bullish.

The bullish bitcoin fractal

Recently, Bitcoin has tended to move within areas of the Fibonacci channel that act as supports and resistances. At TradingShot’s discretion, these areas are drawn with the following lines: 0, 0.382, 0.5, 0.618, 1.0, 1.382, 1.5, 1.618 and 2.0 – all running parallel to each other to the upside.

The Fibonacci channel structure shows that Bitcoin closed a weekly candle above the 1.618 extension line, suggesting two possible scenarios. The first scenario deals with the prospects of an extended rally towards the next extension line at 2.0. Meanwhile, the second focuses on a downward correction towards the 1.618 – 1.382 zone.

This 2.0 Fib extension is near $70,000. On the other hand, the 1.618-1.382 zone roughly represents the $50,000 to $35,000 range. TradingShot adds that even a downside retracement would allow traders to buy the bitcoin dip – based on similar sentiment following a downward move last December.

„Right now, the model suggests that since BTC/USD has closed a 1W candle above the 1.618 Fibonacci extension, it will move forward to test the 2.0 Fib-Ext,“ TradingShot said.

„The reason for this is the historical price action itself. If the 0.618 is rejected but price remains supported within the 0.382-0.618 zone (no candle closes outside), it bounces to the next 1.0 interval (blue arrow),“ the firm said.

But: who’s buying?

Bitcoin’s recent price surge above $50,000 appeared after a spate of encouraging news from Wall Street.

In February alone, Tesla revealed that it now holds $1.5bn worth of Bitcoin on its balance sheet. Meanwhile, Nasdaq-listed software intelligence company MicroStrategy increased its Bitcoin reserves to 71,079 BTC after buying an additional $10 million worth of tokens.

According to a press release issued on Tuesday, MicroStrategy now plans to raise another $600 million from convertible senior notes to buy Bitcoins. The announcement was instrumental in driving the BTC/USD exchange rate above $50,000.

Many analysts expect bitcoin euphoria to continue to rise as long as investors and companies have an appetite for riskier assets in the face of a depreciating US dollar and poor bond yields.

This could allow the benchmark cryptocurrency to meet the technically driven bullish expectations of TradingShot analysts.