Bitcoin price description has claimed that the cryptocurrency could hit the $100,000 mark of 2021. This price prediction for Bitcoin comes from a Bloomberg report that weighs various cryptocurrencies and how it expects them to perform in the coming months.
So far, 2021 has been a highly volatile year for Bitcoin. In April 2021, it touched an all-time high of $65,000 and has been able to be corrected by more than 50 percent within one month, in May 2021. This development came after Tesla CEO Elon Musk announced that his company would no longer accept Bitcoin as a payment method. After a few months of consolidation, Bitcoin reclaimed the $ 50,000 level.
So, will Bitcoin ever hit the $100,000 mark by the end of 2021?
The answer is, No.
Although nobody can predict with 100% accuracy about the market will turn out, but the chances of Bitcoin to reach or cross the $100k mark appear to be slim.
Why is it impossible?
An increase in the price of Bitcoin is a function of how much money is being poured into it. As of the time of writing this article, the price of Bitcoin is at $59,000 with a market cap of $1.1 trillion. However, for the price of Bitcoin to hit $100,000, the price has to increase by about 40% of the current price with a market cap of $2 trillion.
Therefore, where will about $1 trillion be coming from? This is because such a large amount of money requires either significant institutional investment or a huge amount of retail investment.
Furthermore, it is noteworthy to understand that Bitcoin price is largely dictated and predicted by the market’s sentiments. With an improved market strategy characterized by Bitcoin, there are a plethora of people who are cautious about investing in cryptocurrency. Perhaps some of those who entered the market in 2021 may be making losses or few profits.
The recent uptrend movement in Bitcoin price is a sigh of relief but we won’t have another (proper) bull run until Bitcoin can firmly establish 20 week SMA as a support level (this is currently hovering between $55k and $59k). Hence, we need either a couple more weeks of a consistent move-up or a test of 20 weeks SMA and a bounce back up. If we have a weekly close below it, then we will likely experience a bigger dip (possibly to mid-40s) and another few weeks of sideways movement before we will go up again.
How high will the Bitcoin price rise?
Sequel to the aforementioned, Bitcoin is expected to reach the top of this market cycle between April and August 2022 with a market price of $120,000. Let’s be reminded that the longer the cycle, the higher price would be achieved. Thus, it is expected that this market cycle would be able to finish by late 2023 before the next halving.
Bitcoin is largely expected to reach and exceed the $100k, but achieving the feat might not be feasible by the end of 2021. Nevertheless, Bitcoin will reach some price between 70–85k before the end of this year and will reach this market cycle’s peak of around 120k by spring of 2022.