Crypto currency

BTC Price Predictions and Analysis: Bitcoin Price Breakout!

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

We’re sure you know, but Bitcoin is the best-known digital currency (also known as cryptocurrency). It was the very first decentralized currency that works by means of blockchain technology. The native token was launched in 2009, in the midst of a global financial crisis. Because many people were suspicious of banks, Bitcoin immediately won the interest of a large group of people.

The system allows you to send “money” to someone else without the intervention of a third party. The data is not managed by one person but by all users of the network. This makes it one large decentralized database of transactions.

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

In the past year, something unique happened that had not happened often before: the halving of the block subsidy. On the 11th of May, there was finally the news that had been long-awaited. For the first time ever, a miner processed a block with a subsidy of “only” 6.25 BTC. This was a totally new reward per block and, with that, Bitcoin entered a new era.

The timing was perfect: while the world was on fire and stimulus and money packages kept the economy going, the opposite happened with Bitcoin: assets became scarcer.

Since May this year, only 900 new BTC have come into circulation per day instead of 1800 BTC (as was the case for four years). This supply shock soon became visible in the price: the supply dried up, and the price rose.

June 4: Bitcoin Core Update

The Bitcoin news from the beginning of June may not have been spectacular, but it was not superfluous by any means. Throughout the year, many developers have worked hard on Bitcoin’s code. While this has not caused very big price increases, it is still hugely important news.

Bitcoin Core is the beating heart of everything that happens in the ecosystem. The 28th upgrade came in June. This upgrade was the result, which 119 developers worked on for six months.

The major improvement was that OpenSSL was removed from the code. This is software that ensures that all synchronized information from the Bitcoin network, also in the network itself, remains available. It’s a kind of database within a database, simply put. With version 0.20.0, OpenSSL has been “completely removed,” Folkson said. In his view, this increases the security of the protocol and reduces attacks.

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

PayPal opened its doors to Bitcoin in mid-October. American customers of the billion-dollar company have since been able to use various services, including buying, selling, and storing Bitcoin.

PayPal does not facilitate withdrawals, however. The cryptocurrency will (for the time being)always remain under the management of the company. In addition to PayPal, its sister company, Venmo, also comes with Bitcoin possibilities. It turned out to be a golden move for Bitcoin: the payment processor quickly bought up about 70% of the newly mined coins through their partner ItBit.

In response to the news, the price of Bitcoin skyrocketed. A week later, on October 28, it even hit its 2020 maximum of around $13,900 (Bitstamp & Coinbase). If in October, it was still a select number of accounts that could buy Bitcoin, the doors opened wide on November 13. It again resulted in a price increase.

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

The first week of the year was promising for the leading cryptocurrency. BTC hit a new high above $40,000 on January 8, 2021. Still, the rise didn’t last for long. On January 11, the digital coin lost around 17%. BTC touched the low of $30,261 and closed at $35,455.58.

The plunge was partially caused by regulation issues. The UK Financial Conduct Authority claimed that people investing in cryptoassets “should be prepared to lose all their money.” Regulation issues are always a reason for market crashes. As a result, Bitcoin lost around $125 billion in market value within a day. During January 2021, the BTC/USD pair was mostly falling.

Additional regulatory comments didn’t give investors optimism.

On Davos panel on January 25, FCA Chief Mr. Bailey was sure that “Bitcoin’s days [were] numbered.” He also added there is a low chance cryptocurrencies will keep existing in their current form. Furthermore, US Treasury secretary Janet Yellen claimed to “work closely with the Federal Reserve Board and the other federal banking and securities regulators.” Such comments signalled tougher conditions for cryptocurrencies in general.

Tesla Boosts BTC

The question of whether Bitcoin would go back up worried investors. The decline finished soon. On January 28, Elon Musk added a Bitcoin hashtag to his Twitter account. As a result, the price skyrocketed by 11% within a day. 

As of February 8, in an SEC filing, Tesla mentioned it purchased $1.5 billion worth of Bitcoin. Additionally, the enterprise claimed to accept BTC as a payment method. By February 9, the price was over $48,000.

On February 16, the price of the BTC jumped above $50,000. The Tesla effect was still in play. 

Later, on February 21, the cryptocurrency set the all-time high at $58,330.57 (CoinMarketCap).

All-Time Highs

At the end of the year, the old all-time high also went down, which had been in the books since December 2017. On November 25, the “20k” mark was broken for the first time. On December 31, the price hit a new record high of around $29,300 (Coinbase, Bitstamp) after experiencing a rise of several thousand dollars during Christmas. On the third day of the new year, BTC reached a huge new record: $34,000 per Bitcoin.

During the beginning of the year, the price was hitting new tops. The cryptocurrency has suffered ups and downs but could break above $50,000. Bitcoin price today (27.04.2021) is $54 455.02.

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.

Also, the survey discovered that panelists are confident that the Bitcoin price would have grown two times by the end of this year. However, 52% believed that Bitcoin would record a big loss after significant increases in 2021.

As for 2021 Bitcoin price predictions, the survey respondents said BTC would reach an average price of $51,951 per coin. In November 2020, Citibank analyst Tom Fitzpatrick noted that Bitcoin would hit $318,000.

Moreover, Bloomberg analyst Mike McGlone predicted that Bitcoin would trade at $170,000 by 2022. In an interview with Bloomberg Television in 2020, he said:

“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.

Month BTCUSD price
Low High
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

BTCUSD Elliott wave analysis is presented by an independent analyst, Roman Onegin.

You can read here daily short-term Bitcoin price predictions with signals based on wave analysis.

BTC Price Prediction 2022

If the current price is at $54 455.02, what is the Bitcoin future value?

Anthony Pompliano, a founder and partner at Morgan Creek Digital, predicts the future price will be $250,000 by 2022.

Bloomberg analyst Mike McGlone thinks BTC will be at $170,000 in 2022.

Month Open Min-Max Close Total,%
2022
Jan

131237

117980-135740

126860

174 %

Feb

126860

126860-148512

138796

200 %

Mar

138796

138796-172273

161003

248 %

Apr

161003

125776-161003

135243

192 %

May

135243

114912-135243

123561

167 %

Jun

123561

123561-153364

143331

209 %

Jul

143331

127403-146581

136992

196 %

Aug

136992

107018-136992

115073

148 %

Sep

115073

115073-135637

126764

174 %

Oct

126764

101846-126764

109512

136 %

Nov

109512

97173-111801

104487

126 %

Dec

104487

91041-104747

97894

111 %

Source: longforecast.com

Month Rate Forecast MIN Rate MAX Rate Changes, %

Jan

55 499

52 306

56 060

6.70 %

Feb

55 667

54 783

59 911

8.56 %

Mar

57 114

55 274

57 439

3.77 %

Apr

58 183

56 332

62 744

10.22 %

May

60 158

55 343

62 882

11.99 %

Jun

61 968

59 982

66 435

9.71 %

Jul

63 149

60 294

66 813

9.76 %

Aug

63 996

58 482

70 534

17.09 %

Sep

62 231

55 597

66 793

16.76 %

Oct

60 852

55 602

67 185

17.24 %

Nov

61 209

60 822

67 585

10.01 %

Dec

61 211

57 200

61 849

7.52 %

Source: allforecast.com

Source: Digitalcoin

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, %

Jan

62 317

61 689

64 663

4.60 %

Feb

63 278

59 275

63 744

7.01 %

Mar

62 857

58 627

67 143

12.68 %

Apr

63 206

62 414

65 719

5.03 %

May

63 639

57 880

63 940

9.48 %

Jun

62 532

59 479

65 747

9.53 %

Jul

62 193

57 854

64 977

10.96 %

Aug

61 573

55 297

65 857

16.03 %

Sep

63 266

61 719

66 612

7.35 %

Oct

68 036

62 077

68 916

9.92 %

Source: allforecast.com

Month Open Min-Max Close Total,%
2023
Jan

97894

97894-121506

113557

145 %

Feb

113557

113557-140947

131726

184 %

Mar

131726

131659-151479

141569

206 %

Apr

141569

141569-168848

157802

241 %

May

157802

134311-157802

144420

212 %

Jun

144420

125450-144420

134892

191 %

Jul

134892

105377-134892

113309

145 %

Aug

113309

100906-116096

108501

134 %

Sep

108501

95115-109433

102274

121 %

Oct

102274

86405-102274

92909

101 %

Nov

92909

92909-115318

107774

133 %

Dec

107774

85315-107774

91737

98.0%

Source: longforecast.com

Source: Digitalcoin

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:

Month Open Min-Max Close Total,%
2021
Mar

46334

38972-56979

53251

14.9%

Apr

53251

46872-62556

58389

26.0%

May

58389

58389-72472

67731

46.2%

Jun

67731

67731-81293

75975

64.0%

Jul

75975

75975-94300

88131

90.2%

Aug

88131

88131-109388

102232

121 %

Sep

102232

102232-126890

118589

156 %

Oct

118589

100942-118589

108540

134 %

Nov

108540

105216-121054

113135

144 %

Dec

113135

113135-140424

131237

183 %

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.

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