Fears of a rocky economic forecast in the United States, following the introduction of tariffs on Canada, Mexico, and China, are causing a ripple effect across the global marketplace. These economic tremors are laying heavy on the price of Bitcoin (BTC), a leading digital currency, which has seen significant capital outflows as a result. This has led to Bitcoin losing its stronghold over the important $100,000 support zone. This support zone was seen by many as a stepping stone for Bitcoin to reach a new all-time high. Now, the immediate resistance curtails at a formidable $100,000 mark.
Current Bitcoin Status
At the time of reporting, Bitcoin was valued at $98,416, a 3.7% drop within 24 hours. On a weekly basis, the asset depreciated by 2.8%.
AI Predicted Bitcoin Price
As market uncertainty persists, the focal point turns towards the assets’ likely trajectory in the upcoming weeks. For this purpose, Finbold made use of its artificial intelligence (AI) tool to predict Bitcoin’s price as of February 28th.
This AI tool, making use of several models, anticipates a bullish swing for Bitcoin, placing an average price target of $104,000 by February 28, 2025. This marks a 5% increase from its current value.
The AI model, GPT-4o, presents the most optimistic prediction, projecting Bitcoin to reach $105,000. This is based on the recently observed golden cross, which is a positive market sentiment indicator, where the 50-day simple moving average (SMA50) crossed over the 200-day SMA (SMA200).
Bitcoin’s Technical Proposition
Bitcoin’s technical configuration points towards potential long-term growth despite short-term dips predicted by some analysts. As per an analysis by Captain Faibiki, Bitcoin appears to be on the verge of a breakout, having formed an ascending broadening wedge on the daily chart.
This analyst projects a strong rebound if Bitcoin successfully defends the critical $95,000 and $96,000 support zone. If this level holds, Bitcoin is likely to reach a new all-time high by the end of February or early March 2025. And as per historical trends, Bitcoin has delivered an average return of 14.4% for February.
Long-Term Projections for Bitcoin
However, Bitcoin faces the $106,000 resistance level which has been a sticking point for the bullish momentum. Breaking past this level could pave the way for Bitcoin to reach $120,000, as the wedge’s structure suggests significant upside potential.
Backing the bullish long-term outlook, expert Gert van Lagen predicts that Bitcoin could potentially venture into the $270,000 zone based on the encouraging “megaphone pattern.”
Prospective Price Spikes and Market Calmness
Bitcoin’s journey continues as a tug-of-war between optimists and pessimists, with advanced on-chain metrics indicating a potential price spike in the near future.
According to macro researcher Axel Adler, Bitcoin is maintaining a bullish trajectory while staving off signs of market overheating based on the adjusted net unrealized profit/loss (aNUPL) indicator. Adler notes that Bitcoin is currently in a “zone of confidence,” with aNUPL standing at a calm 0.4. This is significantly lower than the 0.7-0.8 range linked with market euphoria in 2017 and 2021.
Frequently Asked Questions
What is Bitcoin?
Bitcoin (BTC) is a type of digital currency, also known as cryptocurrency, which is decentralized and can be used for online transactions. It was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto.
What is the predicted price of Bitcoin for February 28, 2025?
An AI tool used by Finbold predicts that Bitcoin will have an average price target of $104,000 by February 28, 2025.
What is a golden cross?
A golden cross is a technical indicator that occurs when a short-term moving average, like the 50-day SMA, crosses above a long-term moving average, like the 200-day SMA. This is seen as a bullish signal by market participants.
What is the megaphone pattern?
A megaphone pattern is a type of pattern seen on price charts. It consists of two broadening trend lines – one rising and one falling. This pattern is considered bullish when found in a rising market.
