Recently, Bloomberg analysts have given a new mind-boggling forecast for bitcoin. According to Bloomberg bitcoin (BTC) analysts, bitcoin could climb as high as $400,000 this year. Notably, this is not the first bullish forecast for the virtual currency.
“To reach price extremes akin to those years in 2021, the crypto would approach $400,000, based on the regression since the 2011 high. In September, 180-day volatility on the crypto about matched the all-time low from October 2015. From that month’s average price, bitcoin increased a little over 50x to the peak in 2017,” they stressed.
In order to demonstrate similar dynamics, based on the regression from the high values of 2011, bitcoin should reach $400,000 per coin.
Naturally, sometimes history repeats itself. Nevertheless, at the same time, success in the past in the financial markets does not guarantee success in the future.
Experts note that the bullish momentum began after the third halving of bitcoin occurred. Then the miners ‘ reward for mining fell to 6.25 bitcoins. After the previous second halving, which occurred in the summer of 2016 and after the first one at the end of 2012, there were periods of growth of bitcoin for a year and a half. “The year after a supply cut (halving) is what 2021 has in common with 2017 and 2013, along with subdued volatility. The December 2017 peak represented a 50-fold rise from the average price observed in October 2015, when the 180-day volatility reached lifetime lows,” analysts pointed out.
According to the Bloomberg Crypto report, the period during the year after the halving was a common sign of three periods of growth. Besides, in that period, volatility was low. In September 2020, the indicator of the long-term level of volatility hit minimum values. At that time, the price of bitcoin was hovering near $11,000.
Currently, demand for bitcoin may increase amid rising US Treasury yields. Gold will lose its luster with investors amid such a turn of events. They will flock to the crypto market.
From the previous review, you probably remember the influence of large investors on the dynamics of the crypto market. So, recently, the popular cryptocurrency analyst, Willy Foo. predicted the explosive bullish rally for bitcoin. This growth cycle is not over yet, so Wu recommends refraining from opening short deals on BTC.
Meanwhile, as expected yesterday, bitcoin was able to consolidate above the support level formed by the level of 100 on Fibo Expansion (55779.73). It is recovering, maintaining a small margin to the resistance area of 58340.66 – 59517.79. After testing it, the cryptocurrency may probably try to break it once again. If it breaks above this level, BTC/USD may reach a historical high. If not, bitcoin will enter the sideways channel.
The material has been provided by InstaForex Company – www.instaforex.com
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