Bitcoin was the most hottest and profitable asset that people could have invested in 2020, & many have. The cryptocurrency not only had the best year since its launch but has made an all-time high touching $30000.
Many financial institutes have begun looking at cryptocurrency in a positive manner. But how will the cryptocurrency perform in 2021?
Bitcoin had one of the most volatile years since its launch. The cryptocurrency once hit the lowest price in the year at $3782 (crash). But, we suspect that the march 2020 crash was all influenced by the market crash that took place in every financial market in the world. Gold, DOW, Oil, S&P hit the lowest in years. The oil even trading negatively in the futures market which was caused due to an oil price war between Russia & Saudi.
But the market had the best run in the last quarter of 2020. Bitcoin not only hit the yearly high made an all-time high. People even started buying BTC with their Stimulus cheques.
Speculators have suggested more US investors may be planning to use their second $1,200 stimulus cheque to buy #Bitcoin — again. #Cryptocurrency #InvestSmart https://t.co/efFAy6rWcL
— Kush Jain (Mudrex) (@kushjain11) August 4, 2020
So now the main question of how will bitcoin perform in the year 2021?
Bitcoin will keep soaring in the year 2021 until it reaches a point where the investors start to take profit. Bitcoin is a fast-paced market where no one ever controls the price, now that we are seeing a new bull cycle we might see Bitcoin even higher.
It has always been a case where Bitcoin tends to trade higher in Holiday Periods and mainly November & December. Now that we are reaching 2021 it would very much be important to have green Weekly, Monthly & Yearly to have more price soaring.
Bitcoin Price Prediction 2021
Before we drive into any more details let’s dive into Bitcoin trading charts. The trading charts convey the most details than another source.
You can see that the price of Bitcoin has risen from the last all-time high of $19738 to $30000. This is huge, if you had bought Bitcoin at 2020’s low & sold at the highs of the year it could have made you a whopping 675% of ROI. So, what’s next? Where is Bitcoin heading? Will Bitcoin crash?
Watching the current trend of BTC it does not seem that it is going to slow down anytime soon. We might see some sideways action as we always do. The sideways action might suggest if we are going to continue the journey or just fake out and crash. The most incredible indicator of those decisions can be observed by volume. You can see the green and red bars candles at the bottom of the chart. The green is buying volume and red is the sell.
If we see massive sells then it might be an indication of correction and green’s probably be the higher price action. So, ill give you my Bitcoin Price Prediction of 2021 –
1. How High Will Bitcoin Go?
The price of Bitcoin can hit $50000 this bull run before any correction. This would be one of the greatest price action by Bitcoin if it ever happens. We can already see that Bitcoin Dominance has reached 71 and is stronger than ever.
We could see a continuation of the trend until the first quarter of 2021. But, the price action can also be influenced by world news. We are already seeing a new strain of COVID-19 in the UK & could lead the price in any direction.
The sweet spot for BTC can be between $25000 to $3000 to start accumulating before any uptrend.
$35000 & $40000 can be the resistance, if broken we can expect $50000 to be hit in no time.
2. How Low Will Bitcoin Go?
Bitcoin is currently very strong to judge any crashes, but crashes do not come with an intimation. The fear in the market can take the price of BTC much lower than anyone expects. We have seen that in 2020 and also in 2018.
But, there is support at $19798 & $13970 which were the previous highs of Bitcoin. We can expect a huge buy wall at those price ranges. Various news can cause the price to be crashed like any country imposing a ban else higher taxes.
I assume the price to touch $20k in case bitcoin goes into correction mode.
Bitcoin is strong, but the altcoins could do even better. We can assume that Ethereum is getting ready for another bull run. When Bitcoin calms down and has less volatility then all the altcoins can pick up the pace and run up higher.
If you are looking to investing cryptocurrency in 2021 then it might be a good option. It can be harder to recommend buying BTC at the current price, but you could always buy Ethereum which would begin its journey soon.