17:06Bitcoin holds $34,000, what do analysts expect for BTC in Q1 2021?
At the time of publication, Bitcoin traded at $34.034 with a 9.92% profit in the last 24 hours. In the weekly and monthly charts, BTC records gains of 21.80% and 65.92% respectively. Market capitalization is close to $600 billion.
Bitcoin market cap at $1 trillion?
Analyst Nik Patel, author of the book “An Altcoin Trader’s Handbook,” estimates that the price of Bitcoin could reach $47,000 if the cryptocurrency behaves as in the previous bullish cycle back in 2017. At that point, Bitcoin rose from $1,000 to meet resistance at $3,000.
As the image above indicates, Bitcoin could continue to rise and then show a 39% drop to the support area at $29,000 before resuming its bullish trend to the target price. Patel believes that $360,000 is a price where the upward curve and the resistance channel converge but added that he would be “very surprised if we get close” to that price.
Fundstrat Global Advisors co-founder Thomas Lee expects the price of Bitcoin to triple by 2021. Considering $30,000 as a basis for the price of the cryptocurrency, Lee predicts that by year-end, BTC will rise to $90,000 driven by two factors: a weakening in the U.S. dollar and the adoption of BTC by younger generations.
Investors still need to keep an eye on developments in the stock market. Lee believes that if this market crashes, BTC could follow. In response to Lee’s prediction, Kraken’s Chief of Growth Dan Held called it “too bearish” and considers the crypto market to be in a “supercycle”.
Unlike 2017, Bitcoin’s narrative as a version 2.0 of gold, the economic crisis due to the pandemic Covid-19, and the participation of institutional investors have marked and will continue to mark “a new phase” in the crypto market.
Held dismisses the fact that BTC is going through a normal up-and-down market and could go beyond $100,000 if adoption reaches 1% of the world’s population. Held asks the following question and predicts:
Ecoinometrics established the main factors behind Bitcoin rally that are pegged to maintain its relevance through 2021. First, the impact that the reduction in BTC supply due to the 2020 halving has had. Second, BTC’s market capitalization is still “relatively small in relation to its nature as a value depository”.
This indicates that adoption is still early and with a wide margin for it to increase, pushing the price to new highs. Ecoinometrics estimates that BTC’s market capitalization will reach one trillion and even $10 trillion:
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