Bitcoin Forecast And Analysis For 21st February: Profit Taking At 4000, Possible Decline Incoming

In yesterday's post, we saw the price hit 4000 for the first time in over a month. The fact that it's breached this major level indicates a further increase in the coming days/weeks. However, today the price has stalled somewhat, which suggests to me that we'll see a small decline take place soon, possibly back to one of the buy areas created by the rise.

At the time of this writing, the bitcoin course was equal to $3919 and the market capitalization was $70 billion.

The reason the price has stalled is likely to be because the Whales and other large players are taking some profits off the positions they placed during or before the rise, as I mentioned in yesterday post. When people take profits off their trades and investment they have to sell some of what they bought. The problem, of course, is when they do that it causes the price to fall. So in order for all the big players to take the profits they want off the price has to move in a sideways fashion, which is what we seeing now and what you also see during many consolidations.

If the price does fall, there are two points where it has a high probability of reversing; the buy area found closest to the current price (marked blue), and the buy area found below, marked in green.

I'm not sure which it's likely to reverse at, or if it's going to reverse at all. So, for now, keep an eye on both and watch for signs of a reversal.