Bitcoin breaks a price record again! The coin broke the $58,330.57 mark on February 21, 2021. How did this advance come about? The rise above $50,000 really only started in the second half of 2020. It has been a turbulent year, both inside and outside the Bitcoin scene. Time for a brief look back: what big things happened in the world of Bitcoin, and how did this beautiful record market price come about? And what can we expect from the crypto-king next? Will Bitcoin go up even more? Let’s find out in our Bitcoin coin review!
The article covers the following subjects:
Bitcoin in Short
Bitcoin Price Development and Outlook
First of all, let’s address the price development of Bitcoin. In the image below, you can clearly see the various major events and the price increase. A lot has happened in the past year.
March 13: Bitcoin Crash
The first news in the 2020 annual review is immediately the most negative. It happened on the night of March 12, when the price fell to $3,850 in no time (Coinmarketcap). However, the panic was not only in the crypto market. The coronavirus also caused a search for liquidity in the stock market. The AEX closed that week with the largest drop since 1987, a drop of more than 10%. The crash fits into the list of the 6 biggest descents ever.
With three other falls, the former exchange Mt. Gox was (indirectly) involved. That same night, the BitMEX derivatives exchange was temporarily out of reach. It was rumored that a failing stock exchange liquidation engine was the cause of the deep spike down. A few days later, the derivatives exchange tried to clear the air by announcing that it fell prey to two DDoS attacks.
May 11: Bitcoin Halving
June 4: Bitcoin Core Update
July 22: BTC Banking
In July, the US Bitcoin industry got a bit more legitimacy. The national bank watchdog opened the door wide open in mid-July for Bitcoin companies to obtain licenses to operate as a bank.
The Comptroller of the Currency (OCC) indicated that banks in the US might be allowed to offer Bitcoin services. The OCC is a government body that supervises the national banks. They monitor the enforcement of the laws.
This mainly concerns custody services, i.e., the storage of Bitcoin. In the second half of the year, the first companies have already jumped on this news: Avanti, Kraken, BitPay, and Paxos have all applied for a license and bank charter.
Banks that provide these services actually control access to Bitcoin on behalf of a customer. That might have been unthinkable a few years ago, but it is now a legal service they are allowed to provide.
August 6: MicroStrategy
The most bullish news of 2020 comes from August. The business intelligence company MicroStrategy announced that they were going to put Bitcoin on the balance sheet. The reason? The Inflation Ghost. Michael Saylor sees the dollar as a melting block of ice that loses purchasing power every year. During the year, Saylor emerged as a permabull. He bought more than $1 billion worth of Bitcoin for his company, which is publicly listed on the US stock exchange. He did this in multiple batches.
On August 6, MicroStrategy traded $250 million for 21,454 BTC. Around September 15, the company took it a step further with 16,796 BTC. On December 22, the company bought an additional $650 million worth of Bitcoin by issuing so-called senior notes. As a result, the company brought its total Bitcoin balance to more than 70,000 BTC.
October 2: BitMEX
In addition to the price hike, perhaps the most shocking news of October was all about the derivatives platform BitMEX. The exchange has been sued by the US Commodity Futures Trading Commission (CFTC). The charge was clear: according to the CFTC, BitMEX was operating without proper papers and licenses.
Ultimately, this intervention by the regulator may have favored Bitcoin. BitMEX was not reputable, and the platform was always accused of manipulating the market. Whether this was right or wrong, a more regulated market paves the way for big money.
October 21: PayPal
Fall 2020: Institutional Money
The Fall of 2020 was full of institutional money pouring into the market. MicroStrategy kicked it off, but soon others followed. Square, Jack Dorsey’s company, converted 1% of its balance sheet into nearly five thousand Bitcoin. Stone Ridge later also followed for $115 million.
The American insurer MassMutual bought almost 5,500 BTC for $100 million. Guggenheim Partners also participated. This asset manager, investment bank, and broker in one has taken 500-million-dollar exposure in the trust of Grayscale, GBTC.
Ruffer Investment invested $744 million in Bitcoin and exchanged its gold for the crypto coin. That is about 2.7% of the assets that the British company manages. It is said to be 45,000 BTC. Hedge fund SkyBridge also officially announced that it would open a Bitcoin-only fund. They join a growing list of asset managers who do not want to pass up the cryptocurrency price action. They also bought up $ 25 million worth of Bitcoin themselves.
Bitcoin Above $20,000
By the middle of December 2020, BTC/USD managed to climb above $20,000. The rise of the Bitcoin cryptocurrency was supported by investors’ confidence in strong Bitcoin prices. By the end of 2020, Bitcoin was around $30,000. Why is Bitcoin going up? Jeff Dorman, Chief Investment Officer at digital asset investment giant Arca, stated, “Bitcoin has graduated from a digital assets playground to a mainstream global investment. Investors now have the knowledge and means to buy Bitcoin themselves, and we are seeing it in real-time, which happened quicker than we anticipated.”
Bitcoin Goes Down
Tesla Boosts BTC
Bitcoin Price Predictions for 2021 by Crypto Experts
Bitcoin has been setting jaw-dropping records over the past couple of months. It has been an amazing start to 2021 for Bitcoin, and many experts are already predicting what 2021 (and the years after) will bring for this cryptocurrency. So far, opinions have been even more optimistic.
According to a Finder.com survey concluded before BTC reached the $20,000 milestone, several crypto experts were assured that the king coin would continue to surge through mid-2021. Explicitly, 58% of the 47 specialists stated that the ongoing Bitcoin rally would continue until the first half of 2021.
“The key thing about Bitcoin this year is very simple – it just added a one to the front of the number. Remember, it was around $7,000 at the end of last year. What I’m worried about- if you look at the past performance, which is potentially indicative of the future, next year or two could add a zero to the back of the number.”
In the first half of 2020, Morgan Creek CEO Mark Yusko said that Bitcoin could trade at $100,000 in 2021 or 2022. In the interview, the CEO added that BTC could also climb $400 to $500k.
Bitcoin Technical Analysis
The first stage of our BTCUSD technical analysisdeals with the one-month time frame.
The BTC/USD price history over a few past years is shown in the chart above. We see a gradual stable bullish trendthat started in 2017.
Cryptocurrencies’ second life started in October 2020 when trading volumes grew and historical highs were retested against a backdrop of the previous years’ calm.
Bitcoin‘s price has been growing steeply since then. Thinking this situation will last forever would be naive. We have to figure out when the BTC coin will reverse again to buy some bitcoins.
BTC price prediction for the next three months
The weekly chart above indicates that the ultimate candle absorbs almost fully the penultimate candle’s ascending price movement. That’s a bearish signal.
The BTC/USD price location increases negative sentiment. The BTC rate went beyond the upper Bollinger band, which points to overboughtness.
The RSI is overheated too and indicates a bearish divergence.
The limits of a projected fall are marked in the BTC/USD price chart. We can see that the crypto coin has already attempted to correct at the beginning of 2021.
Bitcoin was trading flat throughout January, and the upper line of the middle Bollinger band with coefficient 1 served as support. I don’t have many reasons to say that fractal won’t repeat again. Strong support will then be located at around 42,000.
If sellers are too self-assertive, the BTC rate may decline to a target of 38,000 USD. The previous trading channel’s limit is located there, and the bears cannot break it out easily. Since the bullish trend isn’t broken, such a pullback may turn to the historical high’s retest.
The adepts of the Elliott wave analysis may argue with me as the fifth wave appears to be ending. However, the marketis inert, especially after a rise that big. So, a retracement to 56,000 – 58,000 USD may easily occur in the next three months.
What will be the price of Bitcoin in 2021?
Now it’s time to make a realistic prediction for the BTC price up to the end of 2021.
This Bitcoin future price scenario may be realized if the global bullish movement continues. If the price drops below 38,000 USD, I will have to revise this outlook.
Thus, consolidation has seemed to be the likeliest scenario so far. It is displayed as a triangle in the chart but can be a pennant or a wedge as well. Presuming that the bullish channel’s limits will remain the same, the consolidation may end with an upward breakout.
The historical maximum of 58,200 dollars for 1 Bitcoin may then become a serious obstacle. If that level is broken out, we are very likely to see sharp ascending momentum, something similar to the historical peak’s breakout at 20,000 USD. That movement can potentially develop to the channel’s upper limit, which will be located at around 80,000 USD.
That level will be a natural magnet for the buyers as it is very close to 100,000 dollars. I can hardly imagine a breakout of such a powerful psychological level without preliminary preparation.
Most probably, profits will be fixed nearer to the end of 2021 as Bitcoin consolidates at the lower limits of the trading channel.
By projecting Bollinger Bands, I analyzed the projected areas of the BTC price’s movement based on the above outlook. Check the prediction chart of BTC/USD above. The limits of Bitcoin‘s projected value for each month are presented in the table below.
|March 2021||38 000||54 300|
|April 2021||40 000||56 300|
|May 2021||34 600||54 880|
|June 2021||38 000||56 600|
|July 2021||40 700||72 000|
|August 2021||56 700||91 600|
|September 2021||52 000||100 000|
|October 2021||46 000||85 300|
|November 2021||54 000||80 100|
|December 2021||59 000||78 200|
BTCUSD Technical analysis is presented by Mikhail Hypov.
Weekly Elliott wave Bitcoin analysis as of 26.04.2021
The BTCUSD market is forming a global zigzag-shaped trend. The daily timeframe displays the second part of the upward impulse wave (A). The (A) wave must have completed, and there is now unfolding the beginning of the bearish correction. There should be developing the impulse down wave, composed of the sub-waves 1-2-3-4-5. The first small sub-wave 1 seems to have completed, so the market could start rising in correction 2. Let us study the market structure in more detail.
As you see from the eight-hour timeframe, the market has turned down and started declining after the ending diagonal 5 completed. There is forming a bearish impulse, with the first small sub-wave 1 completed inside. The market should be rising in wave 2, which could end at a level of around 58000.00. At this level, wave 2 will retrace wave 1 by 61.8%. One could enter long trades in the current situation.
Weekly BTCUSD trading plan:
Buy 49736.00, TP 58000.00
You can read here daily short-term Bitcoin price predictions with signals based on wave analysis.
BTC Price Prediction 2022
|Month||Rate Forecast||MIN Rate||MAX Rate||Changes, %|
Bitcoin Price Prediction 2023
How much will Bitcoin cost in 2023? Will Bitcoin manage to stick to new highs in 2023?
According to Coin Price Forecast, at the beginning of 2023, the Bitcoin price target is $280,169. In the first half of the year, the Bitcoin projected growth hits $333,473. By the year’s end, BTC will stay at $409,382.
Investor Tim Draper: “I think bitcoin in 2022 or the beginning of 2023 will hit $250,000.”
|Month||Rate Forecast||MIN Rate||MAX Rate||Changes, %|
Long-Term Bitcoin Prediction in 2025-2030
Is Bitcoin expected to rise? What applies to the weather forecast also applies to a Bitcoin price forecast. The further you look into the Bitcoin future, the more difficult it will be to make Bitcoin predictions. In 2025, the world may look very different from what we now sketch. Nevertheless, we make an attempt. What will 2025 bring for Bitcoin?
Many analysts agree that Bitcoin does not take the middle ground. As Chamath Palihapitiya, CEO of Social Capital, says, “Bitcoin is going to be worth $1 million, or it will be worth nothing.”
We do not dare to make an exact prediction of the price of Bitcoin in 2025. The Bitcoin price simply depends on too many factors. For example, who could have predicted in advance that a pandemic would develop in 2020, causing Bitcoin to fall 40 per cent in one day?
We can, however, look at the long-term price development. And at the moment, things are still looking good for bitcoin. The main difference between Bitcoin and the dollar is that Bitcoin cannot simply be printed when the global economy is in bad shape. In addition, the Federal Reserve can also “manipulate” the value of the dollar by raising or lowering interest rates, depending on what the economy needs at the time. The result: inflation.
New Bitcoins, on the other hand, are issued at a predetermined rate. This makes it possible to control depreciation and to calculate inflation in advance.
Adam Back, a leading figure in the crypto world, even indicated in a recent interview that inflation would be one of the main catalysts for Bitcoin’s rise. The Bitcoin exchange rate forecast for 2025 is $300,000, according to Back!
Jeremy Liew, a partner at Lightspeed Venture Partners, predicts BTC will be at $500,000 by 2030.
Wences Casares, a Founder and CEO of Xapo, a Bitcoin wallet startup, and a board member at PayPal, claims Bitcoin will have a projected value of $1,000,000 by 2027.
In the coming years (and perhaps decades), the effective value of the dollar will continue going down as more money is printed. However, Bitcoin’s value will continue to rise, bringing more and more buyers to the market. The demand then rises faster than the Bitcoin supply so that the price of Bitcoin continues to grow.
Bitcoin Price History
Finally, let’s take a look at the incredible price changes Bitcoin went through since its launch back in 2013. Analyzing historical price charts may come in handy when making price predictions:
Is Bitcoin a Good Investment?
Should I invest in Bitcoin? Now you may have this question in your mind. The digital currency Bitcoin has risen above $50,000 for the first time on February 21, 2021. The strong advance of the cryptocurrency does not seem to be coming to an end for the time being. So – Bitcoin: buy or sell?
Based on multiple expert analyses, here is a potential BTC price prediction for the rest of 2021:
Back to the present: after reaching the $30,000 milestone, the value of the digital currency increased further almost immediately. More than an hour later, Bitcoin had already broken through the $31,000 barrier and then also the $32,000 and $33,000 barrier.
On Sunday, January 3rd, Bitcoin was above $34,000. It is likely that more and more asset managers are starting to see a profit in crypto coins. Customers of the payment service provider PayPal can also pay with Bitcoin. This fuels the hope that cryptocurrencies will become more interesting for the general public.
However, the investors’ optimism didn’t end, and the price reached a new high above $50,000.
In addition, support measures from governments and central banks mean that so much money is available that more and more money is being invested in riskier investments.
Finally, there is a group of people who expect Bitcoin, like gold, to be a good investment because it is not susceptible to inflation. The current advance started last year. The digital currency then roughly quadrupled in value, according to data from coinmarketcap.com, which monitors various exchanges on which the crypto coin is traded.
Bitcoin Price Prediction FAQ
How high will Bitcoin go? Bitcoin recently hit its all-time high, and the current Bitcoin price is at $54 455.02. Usually, it’s a better idea to buy cryptocurrencies when they are in a dip. However, we all remember how “it was too late” to buy BTC when it was $20, $100, $1000, $20,000, etc. If forecasts come true, the price may reach $300,000. The Bitcoin potential is strong for sure.
Price chart of BTCUSD in real time mode
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.